Executive Pay-Labor Practices Link Rejected

Mattel Inc. stockholders rejected a resolution that sought to link executive pay with fair labor practices at production sites. The Nashville-based United Paperworkers International union, a Mattel shareholder, submitted the proposal urging the El Segundo-based toy maker to reward executives for enforcing company standards requiring the company and its suppliers to comply with wage laws, workplace-safety requirements and child-labor prohibitions. Mattel management opposed the proposal, saying executives are already accountable for such enforcement. The company also presented details of a plan in which outsiders such as community groups will inspect work sites. The company said the program will be managed by independent commissioners, who will make their findings public. Mattel shares rose 38 cents to close at $39.81 on the New York Stock Exchange.