June 2, 2025
Severance Agreement-Related Shareholder Proposals Trending Down
For a few years now, one of the most common executive compensation-related shareholder proposals has sought shareholder approval of new severance packages that exceed a certain multiple (usually 2.99x) of an executive’s base salary and bonus. These were particularly popular in 2023, and they remained the most prominent compensation-related proposal in 2024. So far — through May 1 — they are still common but have continued to decline this year. ISS-Corporate reports:
With respect to executive compensation topics, included under governance-related proposals, the number of shareholder proposals seeking shareholder ratification of severance payments has continued to decline. In 2023, we saw an increase to a record high of 39 such proposals, two of which received majority support. The number of proposals regarding executive severance agreements declined this year to 28 (from 33 in 2024), and so far, none of these proposals have received majority support.
– Meredith Ervine
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