Loading...
14 February 2022 / Report
Email
Linkedin
Facebook
X
Copy LinkWhile average support for company-sponsored say-on-pay proposals in the Russell 3000 remained strong in the 2021 proxy season at 90.2 percent (versus 90.1 percent in 2020), 57 out of 2082 companies (or 2.7 percent) failed to receive majority support, an uptick from 2020, when 47 out of 2117 companies (or 2.2 percent) failed to receive such support.1
Yet even though the number of failed say-on-pay votes was higher in 2021 than in 2020, more companies (in absolute and relative terms) received at least 90 percent support (1,550 companies, or 74 percent, in 2021 versus 1,527 companies, or 72 percent, in 2020). Additionally, 84 companies (or 4 percent) failed to reach at least 70 percent support in 2021 (a decline from the 115 companies, or 5.4 percent, found in 2020)—the threshold below which proxy advisors begin to scrutinize companies’ responsiveness to shareholder concerns.
Overall, the high support level suggests that investors generally approved the pay decisions companies made in response to the COVID-19 pandemic—except at the largest companies. Companies with an annual revenue of $50 billion and over, whose tot
myTCB® Members get exclusive access to webcasts, publications, data and analysis, plus discounts to events.
