Mid-Season Say on Pay Failure Rate Increases Above 2018 Year-to-Date Failure Rate

Mid-Season Say on Pay Failure Rate Increases Above 2018 Year-to-Date Failure RateZoom inDownload PDF

1,534 Russell 3000 companies have held Say on Pay votes thus far in 2019 and the average vote support is 91.0%. 13 companies failed Say on Pay since our last report, bringing the failure rate to 2.2%. 1,848 Russell 3000 companies have filed CEO pay ratio disclosures for 2019. The median Pay Ratio filed thus far is 77:1 and the median of median employee compensation is $65,709. The median year-over-year (YoY) change in CEO Pay Ratio by company is +2% while YoY changes at the 25th and 75th percentiles are -13% and +23%, respectively.

349 equity proposals have been submitted thus far and have received an average vote support of 89.6%. Average vote support for Director nominees is 95.6%, a slight increase from vote support in 2018. Shareholders have submitted 20 environmental proposals and 95 social proposals to Russell 3000 companies thus far in 2019. Median support for environmental proposals is down 320 basis points from 2018 levels while median support for social proposals is up 400 basis points.