Investors are showing increased support for executive pay plans following countless shareholder engagement meetings in the last year, according to market watchers. …However, some companies may have learned from the turmoil during the pandemic and are engaging with investors who largely frowned upon businesses’ awarding CEOs one-time retention bonuses and other special awards as workers… Continue reading Investor Support for Say on Pay Shows Tentative Uptick
Tag: Say on Pay
Investors Put a Microscope on Pay Problems
Companies including Altria Group, CVS Health and Intel are the latest to have failed say on pay so far this proxy season, as investors zero in on longtime compensation issues that have been magnified by the coronavirus pandemic.
Indeed, investors are carefully scrutinizing how pay, strategy and performance will align to weather the storm. Shareholders may react to perceived failings on issues such as employee health and safety by voting against pay to send a strong message, sources say.
Additionally, traditional pain points for investors, such as one-time awards and lack of pay-for-performance alignment, are driving negative vote campaigns that have led to weak say-on-pay vote results for some companies this year.
Turning Around a Low Say-On-Pay Vote
Say-on-pay votes remain a critical way for shareholders to express discontent with executive compensation packages. But they also act as a barometer for shareholder dissatisfaction with the board. Gauging how investors might vote on say on pay ahead of the company’s annual meeting can help avoid an embarrassing or contentious director reelection vote or other… Continue reading Turning Around a Low Say-On-Pay Vote
Want the Best CEO? Here’s How Much It Will Cost
Royal Dutch Shell shareholders are not too pleased about CEO Ben van Beurden’s 8.9 million euro (about $10.56 million) annual pay package, with advisory firm Institutional Shareholder Services (ISS) urging investors to reject the company’s executive compensation plan, while the Financial Times has reported that a top 20 shareholder will vote against the latest executive… Continue reading Want the Best CEO? Here’s How Much It Will Cost
REIT Sector Gets Lower Marks on Pay Plans
The real-estate investment trust industry, which has gotten high marks in recent years for adopting compensation programs that investors like, has suffered a bit of slippage in 2016. So far this year, four REITs including mall giant General Growth Properties Inc. have had pay plans rejected by shareholders in nonbinding votes. By comparison, only one REIT received such… Continue reading REIT Sector Gets Lower Marks on Pay Plans