Report update: Cogent Communications fails after receiving vote of 68% in 2012 and 39% in 2011Download PDF
We collected results for 46 more companies this week, bringing our total to 228 for the season. Thus far, 94% are passing with above 70% support — and five companies have failed thus far. Average vote results have improved by approximately 2% year over year. Five companies that failed in 2012 have received significantly more support in 2013 (average of +47%). We have noticed that ISS has recommended ‘against’ fewer companies this year (10% of companies, as compared with 14% in 2012 and 12% in 2011). In our “Vote of the Week,” we discuss Cogent Communications, which received 39% vote support in 2013 after receiving a vote below 70% in 2012 and failing in 2011. The failure this year may be attributable to: a mega grant of time based equity made to the CEO, lack of performance criteria, limited engagement with shareholders following consecutive votes under 70%, and underlying problematic pay practices.