Report Update: Failure Rate Remains at Lowest Level Since 2011 – Including our Special Topic: Revisiting an Industry Breakdown of Say on Pay Votes

Report Update: Failure Rate Remains at Lowest Level Since 2011 – Including our Special Topic: Revisiting an Industry Breakdown of Say on Pay VotesZoom inDownload PDF

To date, 1,834 Russell 3000 companies have held Say on Pay votes and 93% have passed with above 70% support. 29 companies (1.6%) have failed Say on Pay thus far in 2016; the only company that has failed since the last report is Bed Bath & Beyond. Proxy advisory firm ISS has recommended ‘Against’ Say on Pay proposals at 12% of companies it has assessed thus far in 2016. Our special topic this week features a breakdown of Say on Pay votes by GICS sector. Votes results have been consistently strong across most sectors – the failure rate has been 2% or less in all but one sector (Energy). Additionally, we have not observed a strong correlation between industry Say on Pay votes and average TSR in the year preceding the vote.