Shareholders Oppose Johnson Controls’ Golden Parachutes

The plan to reward Johnson Controls Inc. executives with “golden parachute” compensation if they are terminated following the merger with Tyco International PLC is not sitting well with shareholders. About 64 percent of Johnson Controls shareholders who voted on an advisory basis today opposed the compensation plan for the company’s named executive officers. The compensation vote was taken today when shareholders approved the merger of Johnson Controls and Tyco. The deal is set to go through on Sept. 2. The golden parachute compensation would only be paid if the executive officer experienced a Johnson Controls qualifying termination immediately following the completion of the merger. The amounts would be paid in a lump sum severance payment of three times the executive’s annual cash compensation, plus pro rata performance bonuses and the payout of additional pension and retirement benefits they would have accrued over the two-year period following the merger.