Published in Bankdirector.com  - December 2011

2011 Shareholder Voting Trends - Preparing for 2012 Say on Pay

By Susan O'Donnell

Say on Pay advisory votes on pay packages were mandated with little notice for the 2011 proxy season, and the vast majority were supported by shareholders. However, as SOP moves into its second year, investors and proxy advisory firms now have more time and more ample resources to closely scrutinize executive pay practices.  

Boards should be taking concrete action now to ensure success in 2012 by ensuring decisions are well-informed and well-documented; by more actively engaging shareholders over pay issues; and by drafting proxy disclosures that will make a compelling case in support of the structure and oversight of executive pay programs.