The Institute for Shareholder Services published its 2006 Postseason Report recently. This report analyzes the year's proxy season. The results are somewhat of a mixed bag for those in the corporate governance movement. The good news is that: (1) proposals to require a majority vote to elect directors received an average level of support of 47.8 percent, up from 43.7 percent; (2) proposals to use performance-based vesting received an average level of support of 41.7 percent, an increase of more than nine percent; and (3) proposals to require disclosure of political contributions increased by a dramatic 12 percent. The bad news is that proposals to require votes on future golden parachutes and to claw back bonuses after restatements received less support this year than last.
Corporate Governance in 2006: Good News and Bad
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