Report Update: Nine Additional Companies Fail Say on Pay – Including our Special Topic: Director ElectionsZoom inDownload PDF
Our special topic this week focuses on director election vote results for Russell 3000 companies since 2014. Over 80% of director elections have received vote support above 95% and only 0.3% of elections have failed to receive majority support. In the year following a failed Say on Pay vote, Compensation Committee members and chairs receive 9% and 12% less support than non-members, respectively. To date, 1,383 Russell 3000 companies have held Say on Pay votes and 93% have passed with above 70% support. 22 companies (1.6%) have failed Say on Pay thus far in 2016. The nine new companies that have failed since our last report are Banc of California, Bill Barrett Corp., Community Health Systems, Diodes, General Growth Properties, HCI Group, Senior Housing Properties Trust, Tutor Perini, and Ultra Petroleum. Proxy advisory firm ISS has recommended ‘Against’ Say on Pay proposals at 10% of companies it has assessed thus far in 2016.