High Marks for Say on Pay Thus Far

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)

The Hottest Corporate Fad: Pay CEOs to Find Successors

The Wall Street Journal (subscription required)

As investors’ anxiety over rocky CEO transitions grows, an increasing number of companies are tying executive bonuses to effective succession planning. Representatives from Korn/Ferry and ISS predict the number of companies offering compensation for exit preparation to nearly triple over the next 5 years. Although the policy’s effects are still unknown, several CEOs have cited the special award bonus as motivation for their succession planning efforts.

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From Critics + Commentators

Interesting Case Illustrating the Benefits of a Rule 10b5-1 Trading Plans |  Melbinger’s Compensation Blog (subscription required) April 7, 2014

Boards, Don’t Obsess Over Shareholder Value |  Agenda (subscription required) April 7, 2014