ISS Recommends Caterpillar (CAT) Shareholders Vote Against Exec Compensation Policies at Annual Meeting

May 27, 2015 7:15 AM EDT

Proxy advisory firm ISS said investors should reject the proposed executive compensation policies for Caterpiller (NYSE: CAT), which will be voted on at the company's annual meeting on June 10th.

ISS also said investors should vote against the re-election of director Juan Gallardo. The firm noted that Gallardo is overextended due to serving on the boards of three other companies.

ISS noted that Caterpillar CEO Doug Oberhelman has seen his total compensation increase 14 percent to $17.13 million in 2014, with the increase coming amid lagging performance and returns for the stock. The firm added, The maximum performance goal was attained for the annual incentive award when goals had been lowered significantly from 2013 targets ... and despite only marginal increases in the company's profitability.

Shares of Caterpillar are moderately positive in early trading Wednesday.

NOTE: The Caterpillar proxy is below:

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