A recent report from Semler Brossy includes predictions for the 2020 proxy season along with early vote results for say-on-pay, equity plan proposals and director elections. Here’s some of the data:
– The firm predicts the Russell 3000 say-on-pay failure rate trend will reverse and drop below 2% and
– Say-on-pay vote support will be more varied across companies in 2020
– Russell 3000 average director election vote results will fall below 94.5%
Review of voting results so far in 2020
– 2 companies of the 147 reviewed have failed say-on-pay
– Current say-on-pay failure rate of 1.4% is the same as it was at this time last year
– 91.4% average say-on-pay vote result is 20 basis points lower than the average vote result at this time last year
– Current average say-on-pay vote result for companies receiving an ISS “against” recommendation is 38 percentage points lower than for companies that received an ISS “for” recommendation
– Current average vote support for equity proposals (91.7%) is higher than the average vote support at this time last year (84.6%)
– No equity plan proposals have received vote support below 50%
There’s a recent Equilar blog that looks at say-on-pay vote trends over the last 5 years. The blog also reviewed say-on-pay votes from the largest asset managers and notes that only BNY Mellon and Prudential voted in favor of say-on-pay at less than 75% of the Russell 3000.
-Lynn Jokela, CompensationStandards.com April 7, 2020
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