January 27, 2022 Executive Compensation Shareholder Voting, SOP, and Proxy Results Reports

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Volume 8 | Published January 27, 2022
Shareholder Voting, SOP, and Proxy Results

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

Volume 8 | Published January 27, 2022

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. 

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Contributors

Todd Sirras

Todd Sirras

Managing Director

Todd Sirras joined SBCG in 2002 and was named Managing Director in 2005. Prior to SBCG he was a Senior VP in Bank of America’s Asset  Management Group and a trader in listed equity options for O’Connor & Associates. He is a graduate of NYU Stern School of Business, the University of Virginia, and Phillips Exeter Academy.

Industry Experience

  • All Industries
  • Financial Services
  • Fintech

Featured In

  • Equilar C-Suite
  • Corporate Board Member
  • Bank Director
  • NACD/Directorship

Authored Insights

Austin Vanbastelaer

Austin Vanbastelaer

Principal

Austin is a founding member of Semler Brossy’s New York Office and is now located in North Carolina. He advises clients on strategic compensation issues, including during periods of transformative change. As a result, Austin’s client base covers a variety of industries–including fintech, biotech, and retail–and company performance contexts.

Of Interest

Corporate Governance

Industry Experience

  • Companies Undergoing Transformation
  • Retail
  • Biotech
  • Fintech

Featured In

  • WorldAtWork
  • Harvard Law School Forum on Corporate Governance
  • Equilar

Authored Insights

Justin Beck

Justin Beck

Consultant

Justin Beck has more than three years of executive compensation experience working with publicly traded and privately held firms. Justin has helped clients across a broad range of issues, including equity and incentive plan strategy, pay benchmarking, equity dilution management, and Say on Pay support.

Of Interest

Contributes to Say on Pay and Proxy Results report

Industry Experience

  • Retail
  • Financial Services
  • Insurance

Authored Insights

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