Report Update: Failure rate at 1.5%, lowest level since 2011 – Including our Special Topic: Breakdown of Say on Golden Parachute Vote Results

Report Update: Failure rate at 1.5%, lowest level since 2011 – Including our Special Topic: Breakdown of Say on Golden Parachute Vote ResultsZoom inDownload PDF

To date, 1,623 Russell 3000 companies have held Say on Pay votes and 93% have passed with above 70% support. Twenty-five companies (1.5%) have failed Say on Pay thus far in 2016; the three new companies that have failed since the last report are Atlas Air Worldwide Holdings, C&J Energy Services, and Sucampo Pharmaceuticals. Proxy advisory firm ISS has recommended ‘Against’ Say on Pay proposals at 11% of companies it has assessed thus far in 2016. Our special topic this week features a breakdown of Say on Pay Golden Parachute vote results. So far in 2016 we have observed an marked increase in the rate of Golden Parachute vote failures – 15% of companies have failed so far this year, more than 3 times the rate observed between 2013 – 2015. Additionally, ISS ‘Against’ recommendations are having an increasingly negative impact on Golden Parachute vote results.