Two more Russell 3000 companies fail SOP; total now at 51
Two more companies – Best Buy and Kforce – have failed Say on Pay, bringing the total for the season to 51. According to CNBC, Best Buy failed Say on Pay after ISS “recommended that shareholders vote against the proposal primary due to the separation package paid to former CEO Brian Dunn.” Brian Dunn received a separation package valued around $5.5m, which included severance of $2.85m and continued vesting of restricted stock grants. Kforce received 39% support from shareholders this year after receiving 85% in 2011. ISS cited concerns with the company’s above-median benchmarking practices and acceleration of equity vesting following a cash sale that resulted in a pre-tax gain; disclosure was clear that the accelerated vesting was intended to offset a tax liability. Reported CEO pay also increased in a year when TSR was down 24%.