Center on Executive Compensation

First-of-a-Kind Study Reveals Nation’s 25 Largest Institutional Investors’ Views on Executive Compensation

The Center’s sponsored study to identify the perspectives of the nation’s largest 25 institutional investors on executive compensation confirms that making broad assumptions about the views of institutional investors on this topic often does not reflect realities, underscoring a need for a thoughtful and reasoned approach to any executive compensation policy changes. Specifically, the study reveals that:

• The majority of large institutional investors do not support a shareholder vote on executive compensation;
  
  
• Large institutional investors are not generally concerned with the level of executive compensation, provided it is clearly and appropriately linked to company results;
  
  
• One-third of the large institutional investors raised unsolicited concerns over the influence that proxy advisory services have over the proxy voting process, including compensation matters;
  
  
• Despite updated SEC disclosure rules, the overwhelming majority of large institutional investors have been disappointed in the rules and how companies have implemented them, especially the lack of clarity in the Compensation Discussion and Analysis.

According to the Center’s report, the study was commissioned because these institutions collectively represent over $6 trillion in U.S. equities, or 65% of the top 300 institutional investors and thus have substantial influence in the marketplace.

Press Release
Summary of Findings and Conclusions
Center On Executive Compensation Action Items Based on Report
Illustrative Quotes from the Report
Full Study