The fact that as of June 1, 31 companies out of more than 1,600 have reported
shareholders have voted down executive compensation plans (of those a majority
are small- and mid-cap companies) doesn't begin to tell the story of the first
year of SEC-mandated Say on Pay advisory votes.
That's because the real story is what are boards,
management and shareholder learning from the whole experience. That is to say,
is there any real dialogue taking place between the companies and shareholders
other than the required SEC filings? Based on some early anecdotal evidence and one study
done by Semler Brossy Consulting Group, there is some dialogue.
I could sit here and overwhelm you with all the figures
for the 2011 proxy season so far (don't worry, I will), but I would be remiss
if I didn't point out the shift that is taking place in the boardroom and at
the annual general meetings. Directors, officers, and shareholders are actually
discussing and dealing with the issue of excessive executive compensation
following the 2008-2009 financial crisis. In the past, that discussion was
mostly one-sided with shareholders making all the noise.
Read the rest of this article on the Governance Center Blog
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