June 29, 2018
Say-on-Pay: One Take on Recent Low Votes
– Liz Dunshee
So far, this year’s say-on-pay failure rate is about 2% higher than last year. This “As You Sow” blog gives a take on why that’s happening. Here’s the intro:
Not all the votes are in, but there are already a significant number low votes and outright losses among the S&P 500 on pay packages. So far there are seven S&P 500 companies that have lost majority votes that I’m aware of for this calendar year: Ameriprise, Disney, Halliburton, Mattel, Mondelez, Western Digital and Wynn Resorts. Chesapeake Energy which was removed from the S&P 500 on March 19, 2018 due to “market capitalization changes” also had a failed pay vote.
Most of the early low votes and failures fell under two categories: transition packages and pay/performance disconnect. In many instances both factors were in play.