Early shareholder Say on Pay results indicate overwhelming support for executive compensation packages. Russell 3000 companies are averaging 93% shareholder approval (up from 90% last year), with only one company, Hologic, failing its vote (down from 3 at this time last year). After three years of experience with Dodd-Frank shareholder voting requirements, companies have adapted their compensation strategies in order to avoid ISS red flags and more closely link pay with performance. This year, only 4% of companies received negative recommendations, down from 14% last year. Only 170 companies have reported data, and many proxy shareholder votes are expected in the next few months.
Early Say-on-Pay Results Show Rising Support, Few Failures (WSJ CFO Journal)
Enough is Enough! One CEO's Pay Plan Nixed by Investors (USA Today: Money)