Executive compensation will be a hot topic during the upcoming proxy season, which will see a second round of say-on-pay votes. Last year, only about 45 companies failed to win majority approval for their pay packages for executives, even though proxy advisory firms had recommended “no” votes for about 300 companies. But there is no room for complacency because this year proxy advisory firm ISS set the bar higher for the advisory votes on pay, suggesting that approval levels below 70% should trigger a closer look at a company’s compensation.

Companies that fail to achieve that 70% level may want to rethink their compensation plans or defend them, says Don Keller, a partner at PwC’s Center for Board Governance.

Martin Dunn, a partner at O’Melveny & Myers in Washington, notes that when investors are unhappy about a company’s executive pay, “quite often it’s not what needed to be changed, it’s what needs to be better explained.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.