April 4, 2022
Say-on-Pay: Looking Brighter in 2022?
With proxy season in full swing, here are some observations from the latest Semler Brossy memo tracking say-on-pay results for this season, published as of March 31:
– The current failure rate for the Russell 3000 is at 2.2% (with 3 companies failing), much lower than the failure rate at this time last year (4.9%). The three are Arrowhead Pharmaceuticals, D.R. Horton & Griffon Corporation – and notably, D.R. Horton’s CEO is on As You Sow’s Most Overpaid CEOs list.
– Breaking it down by sector, it looks like the consumer, industrials, IT & healthcare industries are where you see support dipping below 70%.
– 8.9% of Russell 3000 companies have received an “Against” recommendation from ISS thus far, which is 240 basis points lower than 2021 year-end.
It’s still early days and there’s lots more to come on this topic, since only 32 S&P500 companies have held a say-on-pay vote thus far. We’ll keep posting these stats in our “Say-on-Pay” Practice Area to keep you informed.
– Emily Sacks-Wilner