Report Update: Two Additional Companies Fail Say on Pay – Including our Special Feature: Reasons for Say on Pay Failure

Report Update: Two Additional Companies Fail Say on Pay – Including our Special Feature: Reasons for Say on Pay FailureZoom inDownload PDF

Our special feature this week focuses on the probable reasons for Say on Pay failure. Pay and performance relation, problematic pay practices, and rigor of performance goals are all the leading probable causes of failure thus far in 2016. We have also analyzed four specific case studies to demonstrate the different ways in which companies fail their Say on Pay votes. To date, 830 Russell 3000 companies have held Say on Pay votes and 91% have passed with above 70% support. Thirteen companies (1.6%) have failed Say on Pay thus far in 2016; the two new companies that have failed since the last report are BorgWarner and Hatteras Financial. Proxy advisory firm ISS has recommended ‘Against’ Say on Pay proposals at 11% of companies it has assessed thus far in 2016.