Following the lead of Aflac and Verizon, more pay proposals are expected to pass this proxy season. Is that a good thing?
In November, Verizon adopted “say on pay,” becoming the second U.S. public company to do so after Aflac. The decision gives shareholders a nonbinding up-or-down vote on the future pay packages of senior executives, and goes into effect next year. Also in November, a say-on-pay proxy resolution gained support from nearly half of shareholders (48 percent) at Cisco.
As Congress debates whether or not the rule should be implemented for all companies and the CEO pay issue continues to be a lightning rod, say on pay is likely to be one of the most controversial issues this coming proxy season. One reason for all of this attention is that the issue has become emblematic of the shareholder push for more influence on corporate decision making.
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