Shareholders will be more willing to vote down executive compensation plans during say-on-pay votes next year, says Robin Ferracone, chairman of executive compensation consulting firm Farient Advisors.They will also pursue by-law changes at many companies to allow shareholders to directly nominate board candidates, she predicts.
“Last year, they [institutional investors] said they’d give companies the benefit of the doubt as it was the first year the say-on-pay vote was carried out. In the upcoming year, however, they are going to be more liberal with their no-vote,” she says.
