Report Update: Two Additional Companies with Support Below 50%—Featuring Trends in Mutual Fund Say on Pay Votes

Report Update: Two Additional Companies with Support Below 50%—Featuring Trends in Mutual Fund Say on Pay VotesZoom inDownload Full Report

Our topic this week features Trends in Mutual Fund Say on Pay Votes—we have analyzed Form N-PX filings from U.S. management investment companies over the past four years to determine how mutual fund votes on Say on Pay proposals have changed over time. Our data shows a convergence in the rate mutual funds vote in line with proxy advisory firm ISS towards 92%. We also see a strong correlation between mutual fund votes and overall Say on Pay results. To date 257 Russell 3000 companies have had their Say on Pay votes and 94% are passing with above 70% support. Two new companies have failed Say on Pay since our last report: Biglari Holdings and Cogent Communications Holdings. It was the third consecutive failure for both companies. Four Russell 3000 companies (1.6%) have failed Say on Pay in 2015. Proxy advisory firm ISS is recommending ‘against’ Say on Pay proposals at 7% of companies.