The number of shareholder proposals calling for a vote on severance packages has skyrocketed, finds proxy adviser ISS.
Very few investors use their AGM votes on executive pay as a spur to improve the company’s ESG performance, research shows.
Chief executive pay deals in the US have begun to cluster around the same levels regardless of the size or profitability of the firms involved.
Even non-binding shareholder votes on CEO pay improve firm performance and shareholder value.
Report says shareholders are likely to maintain pressure over ESG issues, despite uncertainty hanging over US governance following Donald Trump’s presidential election.
Reforms in Brussels will significantly affect directors’ responsibilities for executive salaries with a “say on pay” rule.
France is experiencing an upsurge in shareholder activism as numerous companies see significant votes against their remuneration plans.