January 27, 2022 Executive Compensation Shareholder Voting Reports

2021 Say on Pay Reports 2021 Russell 3000 Average Vote Stays Consistent with Prior Years Despite an Uptick in Failures

Our year-end report recaps proxy voting results and trends for 2021.

The Russell 3000 average Say on Pay vote (90.4%) was consistent with the prior two years, despite an uptick in failures (63). Our review of the likely causes for failure found that problematic pay practices and pay and performance alignment were the most common causes. Pay actions explicitly related to Covid-19 contributed to 32% of failures; however, this number may be higher due to special awards and other actions not explicitly disclosed as related to Covid-19.

The most notable trend of 2021 was a decrease in the S&P 500 average vote result to 88.3%. This was 130 basis points below the prior year result and 210 basis points below the Russell 3000 average vote. The other headline trend was record support levels for social and environmental proposals. 23 social proposals and 16 environmental proposals received greater than 50% support, both significantly higher than any prior year. This report also tracks Director Election and Equity Proposal vote results. 

Contributors

Todd Sirras

Austin Vanbastelaer

Justin Beck

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