With my decision to vote against all pay packages above the median, I am voting against more than ever. Apparently, I’m not alone. Others are waking up as well. Here’s part of a report from Ted Allen of RiskMetrics/ISS from last week:
This week, Cogent Communications Group failed to get majority support from investors on its executive compensation, bringing to 10 the number of U.S. companies where shareholders have made such protests this year.
In addition, investors withheld more than 39 percent support from the pay practices at Pfizer and Johnson & Johnson on Thursday amid “vote no” campaigns by the American Federation of State, County, and Municipal Employees, according to news reports. This dissent is significant, given that S&P 500 companies have been averaging 90 percent support during advisory votes on compensation this year.