Report Update: No new failures; ISS recommending against 11% of companies – featuring Trends in Equity Plan Proposals

Report Update: No new failures; ISS recommending against 11% of companies – featuring Trends in Equity Plan ProposalsZoom inDownload PDF

Our topic this week features Trends in Equity Plan Proposals – we have examined equity plan proposal trends for current Russell 3000 companies to investigate the degree to which the introduction of Say on Pay in 2011 has impacted vote outcomes for equity plans. Our data indicates that companies that do not receive majority support for Say on Pay are 10x more likely to have their equity plan voted against by shareholders.

To date, 148 Russell 3000 companies have had their Say on Pay votes – and 92% are passing with above 70% support. No new companies have failed Say on Pay since our last report; two companies (1.4%) have failed thus far: Nuance Communications and Schnitzer Steel Industries. Proxy advisory firm ISS is recommending ‘against’ Say on Pay proposals at 11% of companies thus far in 2015.