Executive and Director Compensation Responses to Covid-19, Four Bold Predictions for the 2020 Proxy Voting Season, Plus Early Vote Results

Executive and Director Compensation Responses to Covid-19, Four Bold Predictions for the 2020 Proxy Voting Season, Plus Early Vote ResultsZoom inDownload PDF

This report includes a brand new section covering Executive and Director responses to Covid-19. Through April 8, 186 Russell 3000 companies announced or publicly disclosed salary reductions for Management and 116 companies also reduced Board cash retainers, with 56% of these companies announcing comprehensive salary reductions for all or most members of senior management. At this time, it is difficult to estimate the impact Covid-19 and the current market downturn will have on the 2020 proxy season; however, we will monitor and report on any trends that develop from the pandemic in our upcoming reports.

This report includes four predictions for the 2020 proxy voting season, covering the percentage of companies failing Say on Pay, the standard deviation of Say on Pay votes, environmental and social shareholder proposals, and average Director election vote results. Thus far, 147 Russell 3000 companies have held Say on Pay votes in 2020, and the average vote support has been 91.4%. Only two companies (1.4%) have failed Say on Pay so far this year: Acuity Brands and Qualcomm, Inc. This report also tracks Equity Proposal and Director Election vote results, and our upcoming reports will track ESG vote results.