Evercore Partners Inc. (EVR:US) shareholders rejected the firm’s stock incentive compensation plan after the board of directors proposed increasing the number of available shares by about half.
Of the 36 million votes cast, 57 percent opposed the proposal, which recommended adding 11 million shares to the 20 million made available in the original 2006 plan, the New York- based advisory firm said last week in a filing. About 11.3 million voted in favor, the filing shows.
Evercore, founded by former U.S. Deputy Treasury Secretary Roger Altman and run by Chief Executive Officer Ralph Schlosstein, said an increase in available shares helps attract and motivate employees and aligns their interests with shareholders, according to a separate April filing. The incentive vote was binding, unlike a “say on pay” referendum, which the company holds every three years, the last being in 2011, according to the April filing.
“We recognize the potentially dilutive aspects of equity grants,” Evercore said in the April filing. The firm’s share- repurchase program “offsets the dilutive effect to our stockholders from awards being granted under the plan.”
Dana Gorman, an outside spokesman for Evercore, said the company has “sufficient equity under our current plan” to “run the business and execute our strategy for the foreseeable future.” The firm had 5.9 million shares available under the 2006 plan as of April 13, according to the filing.
Evercore gained (EVR:US) 1.9 percent to $24.27 at 12:15 p.m. in New York. Its stock has fallen 8.8 percent this year, compared with a 5.2 percent increase in the Standard & Poor’s 500 Index.
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