Investors Rank their Voting Criteria for Compensation Issues
The results of the Shareholder Forum survey of investor voting criteria on compensation issues are now available:
The surprisingly consistent rankings of criteria and information sources is important to investors, who must find a way to vote responsibly on all their portfolio company compensation issues, including stock plan approvals as well as "Say on Pay," and also to the corporate managers who want to accommodate their shareholders' information needs.
Quoting from the report's introduction:
•Most investors want to know what the company’s board has done to define a compensation plan that supports their corporate strategies, rather than whether the compensation conforms with guidelines established by corporate governance experts.
•Investors also want to get both the facts and explanations directly from a company’s management, rather than from firms that are selling governance opinions.
The report includes charts as well as exhibits of comparisons, comments, etc.
The surprisingly consistent rankings of criteria and information sources is important to investors, who must find a way to vote responsibly on all their portfolio company compensation issues, including stock plan approvals as well as "Say on Pay," and also to the corporate managers who want to accommodate their shareholders' information needs.
Quoting from the report's introduction:
•Most investors want to know what the company’s board has done to define a compensation plan that supports their corporate strategies, rather than whether the compensation conforms with guidelines established by corporate governance experts.
•Investors also want to get both the facts and explanations directly from a company’s management, rather than from firms that are selling governance opinions.
The report includes charts as well as exhibits of comparisons, comments, etc.
It also refers to these continuing Forum projects to support corporate responses to what investors have said they want:
•Second phase survey – Another survey will be conducted in January to get a more detailed definition of investor interests and preferences.
•Corporate participation in survey – A limited number of companies will be invited to include samplings of their own shareholders in the January survey so that they can analyze and more effectively respond to their particular interests.
•Ten Questions – The survey project will be closely coordinated with the “Ten Questions” workshop project initiated a year ago to encourage adaptations of the TIAA-CREF list for standardized investor and corporate use.
Please look at the full report, and tell us how the Forum can support your efforts.
Gary Lutin, Chairman, Shareholder Forum
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