Blockbuster Board Adopts Non-Binding 'Say on Pay' Shareholder Vote
DALLAS, March 25 // PRNewswire-FirstCall // -- Blockbuster Inc. (NYSE: BBI)(NYSE: BBI.B) today announced its Board of Directors has adopted a policy that will give shareholders a non-binding advisory vote on executive compensation beginning in 2009.
The advisory vote, commonly referred to as a "say on pay" provision, will be submitted to Blockbuster's shareholders each year at the company's annual shareholders meeting. The new policy gives shareholders the ability to advise the Board on whether they believe the annual compensation of the top executives at the company, including Chairman and Chief Executive Officer James W. Keyes and Chief Financial Officer Thomas M. Casey, should be ratified. Slightly more than half the votes cast at Blockbuster's 2007 annual meeting supported the enactment of such a provision.
"Our Board is very pleased to take this important step, which reinforces our commitment to implementing strong corporate governance practices and improving transparency with our shareholders," said Jim Keyes. "Holding this advisory vote on executive compensation on an annual basis will not only improve dialogue with our shareholder base, it will also provide our Board with valuable feedback on our compensation policies, which currently link both bonus and equity compensation to Blockbuster's financial and operating performance."
The Board's adoption of "say on pay" is the latest step taken by the Board to promote director accountability. At last year's annual shareholders meeting, the Board proposed to eliminate the classification of the Board of Directors so that all directors would be subject to an annual election, and the shareholders approved this proposal.
Blockbuster Inc. (NYSE: BBI)(NYSE: BBI.B) is a leading global provider of in-home movie and game entertainment, with over 7,800 stores throughout the Americas, Europe, Asia and Australia. The Company may be accessed worldwide at http://www.blockbuster.com/.
SOURCE: Blockbuster Inc.