July 24, 2024
A Good Year For Say-On-Pay
Semler Brossy is out with its latest report on 2024 say-on-pay data and things are looking up! In fact, at Russell 3000 companies, the average support in 2024 is the highest it’s been since 2017, and the failure rate is lower than any year since 2015. Here are some more key takeaways from the report:
– The gap between the S&P 500 and Russell 3000 average vote support continues from 2023 — this diverging support for larger companies has persisted over the last five years.
– The current S&P 500 average vote result of 89.6% is 90 basis points higher than the index’s 2023 year-end average.
– Support was lowest in the Communication Services sector, with 65% of companies receiving over 90% support.
– ISS “Against” recommendation rates for Russell 3000 companies (11.4%) and S&P 500 companies (8.0%) continue to diverge.
– The average vote result for Russell 3000 companies that received an ISS “Against” is 22% lower than those that received an ISS “For” this far in 2024; the spread is 28% for S&P 500 companies.
– Meredith Ervine