Investor Dissatisfaction on Executive Pay Continues to Rise This Proxy Season
With more investors voting "no" on Say on Pay (SOP) than ever before, the number of large-cap companies that have received votes of 70 percent or below is on track to be the largest since SOP was implemented in 2011. In this Farient Brief, Eric Hoffmann analyzes the state of SOP this proxy season. Hoffmann, who leads Farient Information Services and the Data Analytics Team (DAT), has more than 25 years of technology and data analytics experience in executive compensation. Hoffmann dives into the data to tell a story of increased investor revolt over pay – and provides key action steps for boards to address investor concerns to avoid a high-profile SOP failure in the future.
Financial Times – US investors rebel against high executive pay
This year’s proxy season has seen a significant decline in support for compensation packages in Say on Pay votes, highlighting investor dissatisfaction with record high executive pay in the U.S. This Financial Times article, which uses Farient data to explore the trend, discusses the reasons for and implications of investor revolts over compensation.
Bloomberg – Amazon Shareholders Narrowly Approve Pay Plans for Executives
In spite of being urged to vote “no” on CEO Andy Jassy’s pay package, Amazon’s shareholders narrowly approved it in a Say on Pay vote. In this Bloomberg article, data from the Farient Advisors Say on Pay Tracker™ is cited to help put this story into context as we continue through this year’s proxy season, which has already seen contentious Say on Pay votes and high-profile losses by companies.
In addition to our Say on Pay™, Pay Ratio™, and Wealth Trackers™, Farient’s Data Analytics Team (DAT) invites you to visit two new additions to our Tracker Suite, the CEO Pay Tracker™ and the ESG Tracker™. These tools provide users the ability to slice and dice relevant data and compare CEO pay for the Russell 3000 and the prevalence of ESG incentive measures across S&P 500 companies.
Robin Ferracone, Founder and CEO, and Marc Hodak, Partner, of Farient Advisors were among those recognized at the recent National Association of Corporate Directors (NACD) Directorship 100 Gala in NYC this month. The Directorship 100 celebrates the most influential leaders in corporate governance and the boardroom community.
Farient Advisors LLC is an independent executive compensation, performance, and corporate governance consultancy. Farient provides a comprehensive array of services to boards of directors and management, including compensation program design, performance measurement and goal-setting, pay and performance alignment, board of directors’ compensation, and shareholder communications, among others. Farient is located in Los Angeles, New York, Louisville, and Dallas, and is a founding partner of the Global Governance and Executive Compensation (GECN) Group, serving clients in more than 35 countries. Farient is recognized by the Women’s Business Enterprise National Council as a certified diverse company.
Farient Advisors, 654 Madison Avenue, Suite 1209, New York, NY 10065
