We collected results for 136 more companies this week, bringing our total to 1,675 for the season. This week, we found nine more companies that failed Say on Pay, bringing our total to 38 (Big Lots, Consolidated Water Company, East West Bancorp, FTI Consulting, LifePoint Hospitals, Nabors Industries, OpenTable, The Children’s Place Retail Stores, and Tutor Perini). Two companies, Nabors Industries and Tutor Perini, also failed in 2011 and 2012 (joining Kilroy Realty as companies that have failed three consecutive years). Year-over-year, results have improved ~1%; companies that failed in 2012 have received significantly more support in 2013 (on average, +40%).
In our “Vote of the Week,” we discuss Nabors Industries and Tutor Perini. Both companies have failed Say on Pay three times. Failure at both companies was related to (i) high CEO compensation during a period of lagging TSR and net income performance and (ii) shareholder concerns over the company’s outreach process and inadequate program changes.