Report Update: Three additional companies have failed Say on Pay – including our special topic: Trends in Equity Plan

Report Update: Three additional companies have failed Say on Pay – including our special topic: Trends in Equity PlanZoom inDownload PDF

To date, 143 Russell 3000 companies have held Say on Pay votes and 91% have passed with above 70% support. Five companies (3.5%) have failed Say on Pay thus far in 2016; the three new companies that have failed since the last report are M.D.C. Holdings, Motorcar Parts of America and VeriFone Systems. Proxy advisory firm ISS has recommended ‘Against’ Say on Pay proposals at 10% of companies it has assessed thus far in 2016. Our special topic this week examines equity plan vote results for Russell 3000 companies. These vote results displayed similar trends to previous years, with a continued increase in the number of firms receiving greater than 90% support. The average vote result for equity plan proposals was 90% in 2015, which was relatively flat compared to the previous year. Companies that fail Say on Pay tend to have significantly lower support for their equity plan proposals.