Published in Texas CEO Magazine - November 2011

Say on Pay 

By David Bixby

In the first proxy season under new SEC rules requiring a shareholder advisory vote on executive pay programs, nearly 99% of companies received majority support. But a successful outcome in 2011 doesn’t guarantee an easy process for Say on Pay votes in 2012, even if performance is strong.

Continued economic uncertainty and persistent investor concerns about pay-for-performance disconnects means companies will need to make an especially strong case for the design and level of executive pay programs.

This article discusses what companies can do to optimize their chances for a successful Say on Pay outcome in 2012, including obtaining positive voting recommendations from proxy advisory firms.