The Advisors' Blog

– Broc Romanek

This FW Cook blog summarizes current equity plan voting stats among Russell 3000 companies. Here’s a teaser:

– There were a total of 412 proposals seeking shareholder approval of equity plan amendments and 191 proposals requesting shareholder approval of new equity plans. With the exception of three proposals, all received majority shareholder support.

– ISS opposed approximately 18% of the proposals because they failed to receive a passing score under the Equity Plan Scorecard or exhibited negative overriding factors, such as single-trigger vesting risk on a potentially “liberal” change-of-control definition.

– The average passing vote in the aggregate was 90% for both amendments and new plan approvals. With a favorable ISS vote recommendation, both types of proposals passed with 93% shareholder support, on average. Without ISS’ support, the passing rate dipped slightly below 80% for both types of proposals.