Say on Pay

General News

General NewsZoom inCurrent report

The latest news, articles and reports on Say on Pay, including insights from Semler Brossy experts on trends and lessons learned from Say on Pay results.

Report update: one additional company with support below 50%

We have collected Say on Pay vote results for 97 additional Russell 3000 companies, bringing our total to 2,123. The average vote result for all companies in 2014 is 91%. One additional company failed since last week’s report; 48 companies (2.3%) have failed so far this year. Of companies with four years of Say on Pay votes, 1,462 (92.1%) have passed all four years, 105 (6.6%) have passed in three years and failed in one year, 15 companies (0.9%) have passed in two years and failed in two years, three companies (0.2%) have passed in one year and failed in three years, and two companies (0.1%) have failed all four years. Proxy advisory firm ISS is recommending ‘against’ Say on Pay proposals at 13% of companies in 2014. Read more

Vote of the Week: Abercrombie & Fitch

Our “Vote of the Week” features Abercrombie & Fitch. Abercrombie received 96% vote support in 2014 after receiving 20% in 2013. Despite stock price underperformance, the increased vote support is likely due to a new employment agreement with CEO Michael Jeffries, a redesign of annual and long-term incentive plans, and increased use of performance-based equity with multi-year performance conditions. Read more

Report update: five new companies with support below 50%

We have collected Say on Pay vote results for 146 additional Russell 3000 companies, bringing our total to 2,026. The average vote result for all companies in 2014 is 91%. Five additional companies failed since last week’s report; 47 companies (2.3%) have failed so far this year. Read more

Vote of the Week: Time Warner Cable

Our “Vote of the Week” features Time Warner Cable. TWC received 62% vote support in 2014 after receiving 88% in 2013. The decreased vote support is likely due to acceleration of 2015 and 2016 LTI awards in 2014 to mitigate merger retention concerns, increased potential payments under a change-in-control, and supplementary 2014 bonus that provides up to an additional 50% of target with the completion of the merger. Read more

Report update: six new companies with support below 50%

We have collected Say on Pay vote results for 156 additional Russell 3000 companies, bringing our total to 1,880. The average vote result for all companies in 2014 is 91%. Six additional companies failed since last week’s report; 42 companies (2.2%) have failed so far this year. Of companies with four years of Say on Pay votes, 1,321 (92.5%) have passed all four years, 92 (6.4%) have passed in three years and failed in one year, 11 companies (0.8%) have passed in two years and failed in two years, two companies (0.1%) have passed in one year and failed in three years, and two companies (0.1%) have failed all four years. Proxy advisory firm ISS is recommending ‘against’ Say on Pay proposals at 13% of companies in 2014. Read more

Vote of the Week: New York Community Bancorp

Our “Vote of the Week” features New York Community Bancorp. NYCB, a company with triennial Say on Pay votes, received 46% vote support in 2014 after receiving 83% in 2011. The decreased vote support is likely due to sizable and increasing tax gross-up payments made upon the vesting of equity awards, lack of clawback or stock-holding policies for executives, and use of identical performance goals in the annual and long-term incentive plans. Read more

Report update: four new companies with support below 50%

We have collected Say on Pay vote results for 213 additional Russell 3000 companies, bringing our total to 1,724. The average vote result for all companies in 2014 is 91%. Four additional companies failed since last week’s report; 36 companies (2.1%) have failed so far this year. Of companies with four years of Say on Pay votes, 1,226 (92.7%) have passed all four years, 85 (6.4%) have passed in three years and failed in one year, nine companies (0.7%) have passed in two years and failed in two years, two companies (0.2%) have passed in one year and failed in three years, and one company (<0.1%) has failed all four years. Proxy advisory firm ISS is recommending ‘against’ Say on Pay proposals at 13% of companies in 2014. Read more

Vote of the Week: Medidata Solutions

Our “Vote of the Week” features Medidata Solutions. Medidata received 43% vote support in 2014 after receiving 98% in 2013. Despite strong shareholder returns, the Company received a year-over-year decrease in support of 55% likely due to high relative CEO pay, significant and identical pay packages for both the CEO and the President, and a year-over-year increase in the CEO’s and President’s pay of 155% ($4.2MM) largely driven by two special awards. Read more