The definition of insanity!

For the past 13 years, publicly traded companies have been required to ask shareholders to vote on the company’s executive compensation plan. First introduced under Dodd-Frank, the 848-page law includes all sorts of different provisions, including the requirement for shareholders to say yea or nay when it comes to executive compensation.

But other than requiring shareholders to vote, there’s no requirement that companies respect that vote. That’s why it’s called an “advisory vote”. Shareholders are able to express their opinion, but the company is free to ignore that opinion.

Which brings us to a company called Tutor Perini Corp. (TPC). For the past 13 years, the company has asked its shareholders to vote on their executive compensation plan. And for the past 13 years, shareholders have rejected that plan EVERY SINGLE TIME!

One might think that, um, after, say five failed votes in a row, the company might pay attention and make some change. Or, perhaps shareholders might conclude that there’s no bother in voting the comp package down because nothing will ever change. But that’s clearly not the case here. Neither side seems willing to blink.

Which brings us to the definition of insanity: doing the same thing over and over again and expecting a different outcome.

In my research, I’ve been unable to find another publicly traded company that has lost the vote every single time. There’s probably a list floating around somewhere, so if you have it, I’d love to see it. Or please post below.