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Say on Pay failure rate persists at high levels as 12/31 proxy votes are reported

Say on Pay failure rate persists at high levels as 12/31 proxy votes are reportedDownload PDF

As shareholder voting continues, the current 2021 failure rate of 3.3% is well above the 1.9% failure rate observed at this time last year, with 22 Russell 3000 companies failing their vote thus far. Despite an elevated failure rate, a similar percentage of companies received greater than 90% support with average vote support being 90.8%.

Companies receiving an ISS “Against” recommendation have an average vote result 36 percentage points lower than companies receiving a “For” recommendation. This is higher than the historical range of 24 to 32 percentage points, suggesting that shareholders have been more critical of companies receiving an “Against” recommendation this year, while ISS holds the line on Covid-19 guidance.

The support of E&S proposals continues to be higher this proxy season with nine social proposals (21%) and three environmental proposals (50%) receiving greater than 50% support.