Say-on-Pay: Triggers for State Street “Abstentions”
Last week, State Street Global Advisors posted “key takeaways” to remind everyone about the circumstances that could trigger it to abstain from a say-on-pay proposal. They appear basically unchanged from last year’s guidance. Here’s an excerpt:
We cannot predict all instances when we will use an ‘Abstain’ vote but based on past practice typical cases would include:
– Large one-time payments that cannot be justified or explained
– Lack of adequate disclosure or some concerns with performance metrics but recognition of strong longterm performance etc.
– Where companies have responded to some but not all of our concerns.
There will be no change to State Street Global Advisors’ Asset Stewardship Team’s evaluation of compensation votes.
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