In today's corporate landscape, shareholder opposition to compensation proposals is on the rise. This has elevated the importance of shareholder engagement in executive compensation decision-making. In 2022, median support for say-on-pay proposals hit an all-time low, with a record number of companies receiving less than 70 percent investor backing. Equity pay, a significant part of executive compensation, often plays a pivotal role in shaping shareholder sentiment. Consequently, compensation committees are increasingly evaluating strategies to address or preempt shareholder discontent.
Our expert panel will dive into these critical dynamics and examine a compelling case study illustrating how a company addressed low shareholder support attributed to its equity compensation practices, offering practical insights into real-world challenges and solutions.
Key learning points:
- Compensation committee responses: Explore how compensation committees respond to low shareholder support on say-on-pay proposals, including the common drivers behind diminished support and the resultant impact on voting outcomes in subsequent years.
- Effective shareholder engagement: Learn from companies that have faced historically low support levels and discover the strategies and practices that have enabled them to rebound through more effective shareholder engagement.
- Impact of responsiveness: Understand the significance of responsiveness in compensation decisions, spanning from low to high levels, and how these levels can directly influence shareholder support and overall company performance.
CPE CREDIT HOURS: 1.5*
Field of study: Specialized Knowledge
Levels: O
Delivery method: Group live
Advanced preparation: None
CEP Continuing Education (CE) credit:1.25 credits
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