February 8, 2010 — Bethesda-based Calvert Asset Management Company, Inc., the advisor to the Calvert Funds and a leading provider of sustainable and responsible investing, reported that JPMorgan Chase and American Express each agreed to adopt an advisory vote on executive compensation as part of their proxy statements for their 2010 annual meetings. Through these advisory votes, both firms will hold a referendum on their compensation practices, providing shareholders with detailed information on salary, bonuses and benefits, and allowing them to vote to affirm or reject the package.

"Say on Pay" resolutions have become increasingly common since the financial crisis and bailout focused scrutiny on executive compensation and bonuses, especially in the financial services industry. Financial institutions that received TARP funding were required to implement advisory votes on executive pay, but now, as many of these firms have repaid TARP obligations, they are no longer legally obligated to do so.

Calvert's 2010 "Say on Pay" advocacy campaign is part of a larger shareholder effort that includes urging financial institutions to implement an annual advisory vote on executive pay beginning with the 2010 proxy season. In addition to JPMorgan Chase and American Express, Calvert has also filed resolutions with three other financial services companies – Morgan Stanley, Waddell & Reed and Allstate Insurance – seeking an advisory vote on executive compensation. The resolutions with Waddell & Reed and Allstate were co-filed with Boston Common Asset Management and American Federation of State, County and Municipal Employees (AFSCME) as lead filers, respectively.

"We think that the process of disclosing compensation practices, discussing them openly and submitting them to a shareholder vote is an important part of aligning management's interests with those of shareholders," said Stu Dalheim, Director, Shareholder Advocacy, of Calvert Asset Management Company, Inc. in a statement. "We are very pleased that JPMorgan Chase and American Express have joined the growing number of companies that are implementing 'Say on Pay'."

"Having financial services companies such as JPMorgan Chase and American Express voluntarily adopt 'Say on Pay' significantly adds to the momentum building around this important investor tool," said Aditi Mohapatra, Sustainability Analyst in a statement. "We now look to legislators to grant all shareholders a voice on executive compensation by signing a bill that requires every company to establish an annual advisory vote on pay."

Investor efforts to establish advisory votes on executive pay have been enormously successful over the last several years. In 2009, shareholders filed close to 100 of these resolutions, and votes averaged 46 percent in favor. To date more than 30 companies across a broad range of industries have voluntarily agreed to offer an advisory vote on executive pay, including Apple, Ingersoll Rand, Microsoft, Occidental Petroleum, Pfizer, Prudential, Hewlett Packard, Intel, Verizon, MBIA and PG&E.

Source: Calvert Asset Management Company, Inc.