As noted by Robert Kropp at Social Funds, 2009 is witnessing a dramatic increase in “say on pay” shareholder resolutions. He gives some credit for this to “public outrage” over executive compensation levels during a worldwide recession. Shareholder engagement is also driven by sustainable and socially responsible investment (SRI) advocates, who help investors work together to achieve common goals.

Green America (formerly Co-op America) recently launched a “proxy education center” for shareholders. With support from Ceres, the AFL-CIO, and the Interfaith Center for Corporate Responsibility, the site offers guidance on proposed resolutions in four topic areas at 23 major companies.

Even for those who don’t own stock in any of these firms, Green America’s list provides a snapshot of what issues top the SRI agenda for the 2009 proxy season. The center’s four topic areas are:

- Climate Change

- Human Rights

- Credit Cards

- Executive Compensation

All of these subjects are perennial concerns of social investors, and the second two seem to address particular anxieties of this recession. Green America’s favored resolutions call for better reporting of corporate practices in all four areas, while “say on pay” resolutions seek non-binding shareholder votes on executive compensation.

Green America notes that non-binding resolutions may still have teeth, as Entergy agreed to “say on pay” before the issue came to a formal proxy vote. Robert Kropp writes that so far this year, 22 companies have agreed to shareholders’ resolutions in advance of a proxy vote.

For a Canadian perspective on this issue, see Ethical Funds Company’s Shareholder Action Focus List (thanks to Alicia Woods).