New ProxyPulse Report Reveals Decreased Shareholder Support for Executive Compensation
Latest edition shows declines at mid-cap, small-cap and micro-cap companies
NEW YORK, June 26, 2014 /PRNewswire/ -- Shareholder support for executive compensation plans has declined in 2014 at mid-cap, small-cap and micro-cap companies, evidenced by the latest edition of ProxyPulse™, the joint publication from Broadridge Financial Solutions, Inc. (NYSE:BR) and PwC's Center for Board Governance.
In an analysis of 2,788 shareholder meetings held between January 1 and May 22, Broadridge and PwC found that say-on-pay proposals failed to receive majority support at 72 companies - compared to 54 companies in 2013. "This trend points to the significant pressures boards still face around executive compensation," said Mary Ann Cloyd, Leader of PwC's Center for Board Governance.
The report shows that average support levels for executive compensation plans rose to 91% from 89% at large-cap companies, but a greater percentage of mid-cap and small-cap companies failed to attain at least 50 percent shareholder support. Five percent of mid-cap companies failed to reach majority support so far in 2014, up from 2 percent in the 2013 proxy season.
The analysis also found high levels of shareholder support for directors.
"The results show that when it comes to corporate governance, executives and directors must remain vigilant and engaged," said Chuck Callan, SVP Regulatory Affairs, Broadridge Financial Solutions.
Key 2014 developments include:
ProxyPulse is a collaboration of Broadridge, the leading provider of investor communication solutions for financial services firms, mutual funds and corporate issuers globally, and PwC's Center for Board Governance, a group within PwC whose mission is to help directors effectively meet the challenges of their critical roles.