Report Update: Six Additional Companies Fail Say on Pay – Including our Special Topic: Industry Breakdown of Say on Pay Votes

Report Update: Six Additional Companies Fail Say on Pay – Including our Special Topic: Industry Breakdown of Say on Pay VotesZoom inDownload PDF

To date, 385 Russell 3000 companies have held Say on Pay votes and 91% have passed with above 70% support. Eleven companies (2.9%) have failed Say on Pay thus far in 2016; the six new companies that have failed since the last report are Cepheid, Consolidated-Tomoka Land, Exelon, FMC, Masimo, and Wolverine World Wide. 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 votes by GICS sector. The majority of sectors have had at least one company fail Say on Pay, with the Utilities, Consumer Discretionary and Health Care sectors having the highest rate of failures thus far in 2016. We have additionally observed a slight correlation between vote outcomes and sector total shareholder return in the year preceding the vote.