Ready or not, “say on pay” could rapidly become a reality in the United States.
Like the majority election of board directors that swept Corporate America in 2005 and 2006, shareholder advisory votes on executive compensation may be the next big governance trend, observers say. Interest in the votes has “caught on like wildfire,” says Elizabeth McGeveran, vice president of governance and sustainable investment at F&C Management Ltd.
“While majority voting seemed far-fetched a couple of years ago, it’s arguably now the new template in the U.S.,” says Stephen Deane, director of the Center for Corporate Governance at Institutional Shareholder Services. ...