Santa Ana-based Corinthian Colleges Inc. has amended its executive compensation plan in a bid to address concerns raised by shareholders who voted down a proposal last year.
Corinthian said the new plan has been reviewed by 13 of its largest shareholders, a group that together accounts for nearly half of its stock.
Shareholders’ had expressed concerns that the company wasn’t using appropriate peer groups to determine compensation and bonuses, and was paying above-target bonuses despite poor stock and financial performance, the company said.
Corinthian’s Board of Directors Compensation Committee said it’s now pegging direct pay at the 50th percentile of similar companies, using smaller companies as the peer group, and will base bonuses more closely on operating income.
