October 3, 2023
What Impact Do Perks Have on Say-on-Pay Outcomes?
In a new whitepaper (available for download), ISS Corporate Solutions (ICS) reviewed perk usage for CEOs of Russell 3000 companies (including the S&P 500) from January 1, 2020 to June 1, 2023 with a focus on understanding how perks usage impacts shareholder say-on-pay support. The study found that there is a double-digit decrease in shareholder support when ISS highlights perks as a concern. Of course, perks remain a relatively small portion of a CEO pay package, making it hard to understand to what extent the decreased level of support was caused by these concerns. To drill down, ICS removed from the mix companies with unfavorable overall pay programs, and the impact of perk concerns lessened.
If you’re looking to assess the types of perks your company provides, ICS listed life insurance benefits, financial planning benefits, relocation benefits, home security benefits and personal use of corporate aircraft as the most common. Those last two seem to have increased in usage since the pandemic, while the others have decreased or been consistent.
– Meredith Ervine