Allied Waste shareholder opposed to enhanced golden parachutes for executives

By Lisa Kerner

Charlotte, N.C., Sept. 11 - CtW Investment Group asked Allied Waste Industries, Inc.'s board of directors to rescind increases to change-in-control payments for the top five Allied Waste executives.

The increases were approved in connection with Allied Waste's proposed merger with Republic Services, Inc., a Fort Lauderdale, Fla., solid waste collection company, according to a CtW news release.

CtW said supplementing the "already generous golden parachutes ... casts a troubling cloud over the transaction."

Based on Allied Waste's 2008 annual meeting proxy and the preliminary proxy for the proposed merger, the total change-in-control payments for the top five Allied Waste executives increased by over $21 million between Dec. 31, 2007 and Aug. 1, CtW said in a letter to governance committee chair James W. Crownover.

CtW said it is incumbent on the independent directors to show they acted solely in the interest of shareholders when approving the merger with Republic Services.

Republic Services rejected Waste Management, Inc.'s $37-per-share offer to buy the company in favor of its planned merger with Allied Waste, a Phoenix-based non-hazardous solid waste services company, it was previously reported.

Waste Management is a Houston integrated waste services provider.

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