Report Update: Failure Rate Remains at Lowest Level Since 2011 – Including our Special Topic: Trends in Equity Plan Proposals

Report Update: Failure Rate Remains at Lowest Level Since 2011 – Including our Special Topic: Trends in Equity Plan ProposalsZoom inDownload PDF

To date, 1,789 Russell 3000 companies have held Say on Pay votes and 93% have passed with above 70% support. 28 companies (1.6%) have failed Say on Pay thus far in 2016; the three new companies that have failed since the last report are Nabors Industries, NeuStar, and Sonus Networks. 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 an analysis of trends in equity plan proposal votes. So far in 2016 we have observed the number of failed equity plan votes return to historic levels – 4 companies have failed so far this year and the failure rate is 0.6%.