Report Update: No new failures; 1.3% of companies have failed in 2015 – featuring Trends in Say on Pay DEFA14A Responses

Report Update: No new failures; 1.3% of companies have failed in 2015 – featuring Trends in Say on Pay DEFA14A ResponsesZoom inDownload PDF

Our topic this week features Trends in Say on Pay DEFA14A Responses – we have studied DEFA14A filings in response to proxy advisors for current Russell 3000 companies. Our analysis indicates that the number of companies using this supplemental filing to respond to proxy advisors has decreased following a peak in 2012. We also find that large cap companies have the highest rate of DEFA14A filings. To date, 158 Russell 3000 companies have had their Say on Pay votes – 92% are passing with above 70% support. No new companies have failed Say on Pay since our last report; two companies (1.3%) have failed thus far in 2015. Proxy advisory firm ISS is recommending ‘against’ Say on Pay proposals at 10% of companies.