Report Update: Five Companies have Failed Say on Pay thus Far – Including our Special Topic: Trends in Say on Pay DEFA14A filings

Report Update: Five Companies have Failed Say on Pay thus Far – Including our Special Topic: Trends in Say on Pay DEFA14A filingsZoom inDownload PDF

To date, 162 Russell 3000 companies have held Say on Pay votes and 90% have passed with above 70% support. Five companies (3.1%) have failed Say on Pay thus far in 2016; there have not been any additional failures since our last report. Proxy advisory firm ISS has recommended ‘Against’ Say on Pay proposals at 12% of companies it has assessed thus far in 2016. Our special topic this week examines trends in DEFA14A filings for Russell 3000 companies. The number of DEFA14As filed in response to proxy advisors is higher thus far in 2016 than at the same point in 2015. Since 2011, average vote results for companies that receive an ‘Against’ recommendation from ISS and respond in a DEFA14A filing are equal to or below average vote results for companies that receive an ‘Against’ ISS recommendation and do not respond in a DEFA14A filing.