Shareholders approved executive compensation in advisory say-on-pay voting at 101 companies year to date through Monday, while rejecting the proposals at two companies, according to a Towers Watson report Tuesday.
Most companies won strong support from shareholders for say-on-pay proposals, with a mean approval vote of 91%. At 78% of the companies, shareholders voted 90% or more in favor, and at 12% of the firms, the approval range was 80% to 89.9%.
The range at 3% of companies was 70% to 79.9%; between 60% and 69.9 at another 3%; and 2% of companies each for ranges of 50% to 59.9% and zero to 50%.
Beazer Homes and Jacobs Engineering Group shareholders voted 53.9% and 54.5%, respectively, against their say-on-pay proposal, according to their SEC filings. Towers Watson didn’t name the companies in its nine-page report, “Say-on-Pay and Say-on-Frequency Proposals: A Review of Practices of Fortune 1000 and Russell 3000 Companies.”
The results, through Monday, cover companies that revealed results of their voting at annual meetings held since Jan. 21 when the requirement for say-on-pay votes, as well as a say-on-when frequency of such votes, became effective under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
At 76% of companies, shareholders in say-on-when proposals gave a majority support to having say-on-pay voting every year, while at 2% they voted in the majority for a biennial say-on-pay voting and at 17% triennial voting. At 5% of the companies, none of the three frequency periods won a majority of shareholder support.
At Beazar and Jacobs, shareholders overwhelming supported conducting annual say-on-pay voting, according to their SEC filings.
Voting on both sets of proposals is non-binding on all the companies.
Robert Newbury, senior consultant at Towers Watson, declined to comment beyond the report.