June 8, 2021
ISS Vote Recommendation Impact: 2021 Vote Results & Trends
Back in March, I blogged about a report summarizing say-on-pay vote outcomes over the past 10 years, along with data showing the potential impact of proxy advisor vote recommendations. A report from Willis Towers Watson provides 2021 vote trend data based on voting results from January 1 through May 14. The data appears to show a measurable impact from ISS vote recommendations and that the impact of an ISS “against” recommendation has strengthened compared to last year. Here are a few highlights:
Russell 3000 say-on-pay
– Average shareholder support: 90%
– ISS negative vote recommendation: 10%
– Difference in average support between an ISS “for” and “against” vote recommendation: 35%, which is up from 29% in 2020
– Rate of “high” ISS concerns related to pay-for-performance among proposals that received an ISS “against” recommendation: 73%
S&P 1500 equity plan voting results
– Average shareholder support: 91%
– ISS negative vote recommendations: 15%
– Difference in average support between an ISS “for” and “against” vote recommendation: 24%, which is up from 18% in 2020
Also, see Semler Brossy’s most recent report on Say-on-Pay vote results this year, it includes similar findings about the potential impact of ISS “against” vote recommendations.
– Lynn Jokela