Recent results on say-on-pay votes suggest that, at times when shareholders become unhappy with executive pay programs, boards are sometimes caught unaware. This lapse seems to happen for a couple of reasons: oftentimes board members don’t visit shareholders themselves to hear about pay concerns. Read more
Investor Outreach & Say on Pay
Stay up to date on the latest trends in shareholder communication and engagement in connection with Say on Pay and pay for performance.
SBCG’s analysis of pay for performance relationships indicates that simply granting the same number of shares each year to individual executives—rather than using a grant date target value—might result not only in more perceived alignment between pay and performance as measured on the grant date, but also in more actual alignment. Read the entire article (PDF) written by John Borneman and Dan Marcus. Read more
Say on Pay has opened new lines of communication between issuers and investors, but the dialogue has focused heavily on pay structure and features and not enough on the performance the organization is trying to drive. Read more
Say on pay has shed light on companies’ ability to relate pay and performance. Blair Jones, CCP, CECP, Managing Director at Semler Brossy, discusses companies’ shift to other definitions of pay, including realizable pay. Read more
This interview with Blair Jones provides advice on effective shareholder communications, including what it should focus on, depth and timing. Read more