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Nearly a third of Say on Pay failures thus far are due in part to Covid-19 related pay actions

Nearly a third of Say on Pay failures thus far are due in part to Covid-19 related pay actionsDownload PDF

The current 2021 failure rate of 3.1% remains above the 2.2% failure rate observed at this time last year, with 37 Russell 3000 companies failing their vote thus far.

We also observed that nearly 40% of the companies that have failed are also in the S&P 500, possibly indicating shareholders have been more critical of larger cap companies this year. Despite other typical causes for failure, Covid-related pay actions seem to have played some part in the overall voting decisions for 10 of the 37 failures thus far. The support of E&S proposals continues to be higher this proxy season with thirteen social proposals (22%) and seven environmental proposals (44%) receiving greater than 50% support compared to 9% and 16% approval at this time last year.

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