March 23, 2021
Say-on-Pay: SSGA Will Vote “Against” Comp Committees In Egregious Situations
– Liz Dunshee
Last week, State Street released its 2021 proxy voting & engagement guidelines. Lynn blogged yesterday on TheCorporateCounsel.net about two changes to executive pay proposals:
Ongoing high level of dissent against a company’s compensation proposals may indicate that the company is not receptive to investor concerns. If the level of dissent against a company’s remuneration report and/or remuneration policy is consistently high, and we have determined that a vote against a pay-related proposal is warranted in the third consecutive year, we will vote against the Chair of the Compensation Committee.
For problematic pay practices, State Street may vote “against” the re-election of members of the Compensation Committee if the asset manager has serious concerns about pay practices and/or if the company has not been responsive to shareholder pressure to review its approach.