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Golden Parachutes Win Shareholder Support

While the volume of corporate takeovers announced this year has almost doubled, only one company has failed to get shareholder support for lucrative severance packages that follow senior executives out the door.

PacWest Bancorp  received 47% support from shareholders on its advisory “golden parachute” vote in January, ahead of its $2.3 billion merger with CapitalSource Inc. that closed in April.

Investors, including California Public Employees’ Retirement System, were unhappy with acceleration of stock awards and compensation to offset taxes in about $25 million of proposed executive golden parachutes. PacWest didn’t respond to requests for comment.

That sole “no” vote this year was down from nine last year, according to pay adviser Towers Watson & Co., which reviewed results for companies in the Russell 3000 Index.

Read more: The Wall Street Journal Blog

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