The House of Representatives passed its comprehensive tax reform bill on a 227 to 205 vote, while, as previously reported, the Senate Finance Committee removed Center-opposed executive compensation provisions before approving its tax reform bill on a 14 to 12 party-line vote, sending the bill to the full Senate to be considered after the Thanksgiving break
With pay ratio compliance coming soon for companies with annual meeting dates in the first half of the year, the Center On Executive Compensation has been receiving many questions about pay ratio communications, and especially, the content of the disclosure of the ratio itself.
This week, the Center On Executive Compensation and Equilar announced a new online tool developed by the Center for assessing the prevalence of executive incentive plan metrics and their correlation with long-term shareholder value.
Since 2010 there have been only 15 pay ratio related shareholder proposals. These proposals have averaged over 93% shareholder opposition with no single proposal receiving over 10% support.
In 2015, nearly four of five S&P 500 companies received shareholder support for their say on pay proposals which exceeded 90%. Nine of ten companies received support exceeding 80%.