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Say-On-Pay: ISS "Against" Reco Yields 30% Lower Support

By Randi Morrison posted 02-10-2020 08:55 PM

  

Based on its review of 2,237 Russell 3000 proxy filings, Semler Brossy reported these and other noteworthy say-on-pay stats for the 2019 proxy season:

  • The average vote result for companies that received an ISS “Against” recommendation was 30% lower than for companies that received an ISS “For” recommendation, which is at the higher end of the historical average range of 24%-32% that Semler Brossy has observed since 2011.
  • 33% of S&P 500 companies and 28% of Russell 3000 have received vote support below 70% at least once since 2011; 8% of the S&P 500 and 10% of the Russell 3000 and have failed say-on-pay at least once over the same period.
  • Average director election support at companies that received a say-on-pay vote below 50% in the prior year is 6% lower than at companies that received more than 70% vote support.

Director election results are also noteworthy. Notwithstanding the average director election vote support (95.1%) lagging last year's support by 40 bps (0.40%), average support for female director nominees was nearly 2% higher than the average support for male nominees - 96.5% compared to 94.7%, respectively. The statistics are based on the vote results for 17,497 Russell 3000 directors.

          Access additional resources on our Say-on-Pay and Proxy Season 2020 pages. This post first appeared in the weekly Society Alert!

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