Report Update: Two companies with support below 50% thus far – including our special topic: Trends in Proxy Access VotesZoom inDownload PDF
To date, 129 Russell 3000 companies have had Say on Pay votes and 93% have passed with above 70% support. Two companies (1.6%) have failed Say on Pay: Nuance Communications and Tetra Tech. Proxy advisory firm ISS has recommended ‘against’ Say on Pay proposals at 9% of companies it has assessed thus far in 2016. Our special topic this week examines proxy access vote results in the Russell 3000. In 2015, proxy access proposals increased 400% from the prior year. 2015 was the first year in which the majority of proxy access proposals received support above 50%. The Energy sector accounted for 26% of all proxy access proposals put to a vote in 2015. The increase in proposals, coinciding with decreasing stock prices in the Energy sector in 2015, indicates shareholders may be addressing poor company performance with governance-related solutions.