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Say-On-Pay Failures 2021

Say-on-Pay remains a hot topic in corporate governance. These companies have received less than 50% approval on their say-on-pay votes in 2021 and will have big work to do to get shareholders back on their side.

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Say-on-Pay remains a hot topic in corporate governance and generally for investors. Since its introduction in 2011 companies are required to hold say-on-pay votes to give their shareholders to voice their approval, or disapproval of executive compensation. It only applies to named executive officers (i.e. whose compensation is reported in proxies) and not to directors nor any other employees.

The vote is non-binding, meaning that it doesn't directly affect executive pay, but it does help guide go-forward pay practices for executive officers. Oftentimes, as long as pay is not an outlier in size and the company is performing well, the vote will be a non-event. However, when the company's performance is sub-par, materially outsized with regards to peers, or just oddly constructed, it will result in shareholders voicing their discontent.

In 2021, the following companies have had Say-on-Pay votes that received 50% or less support. They will all have serious work to do to get shareholders back on their side -- whether that is through improved company performance, enhanced communication of the plans to shareholders (e.g. Netflix recently did a big push on this), or potentially restructuring compensation plans.

2021 Failed Say-On-Pay Votes
(% voted for)

15% | NCR | Ncr Corp
16% | AIM | AIM ImmunoTech Inc
16% | NCLH | Norwegian Cruise Line Holdings Ltd
17% | PK | Park Hotels & Resorts Inc
20% | BCOR | Blucora Inc
21% | GNL | Global Net Lease Inc
22% | SWKS | Skyworks Solutions Inc
22% | WLL | Whiting Petroleum Corp
23% | RPT | RPT Realty
23% | LCII | Lci Industries
25% | NGS | Natural Gas Services Group Inc
25% | ROLL | RBC Bearings INC
26% | CDAY | Ceridian HCM Holding Inc
26% | CLF | Cleveland-Cliffs Inc
29% | GLRE | Greenlight Capital Re Ltd
30% | PAYC | Paycom Software Inc
30% | MPC | Marathon Petroleum Corp
30% | XRX | Xerox Holdings Corp
31% | WAT | Waters Corp
31% | NBR | Nabors Industries Ltd
31% | MNR | Monmouth Real Estate Investment Corp
31% | KFY | Korn Ferry
32% | AYI | Acuity Brands Inc
34% | SPLK | Splunk Inc
34% | LADR | Ladder Capital Corp
34% | SLG | Sl Green Realty Corp
34% | TPC | Tutor Perini Corp
35% | IVC | Invacare Corp
35% | LMNX | Luminex Corp
36% | ENZ | Enzo Biochem Inc
37% | SABR | Sabre Corp
37% | XENT | Intersect ENT Inc
38% | STL | Sterling Bancorp
38% | GIII | G Iii Apparel Group Ltd
38% | GH | Guardant Health Inc
38% | INTC | Intel Corp
39% | QLYS | Qualys Inc
39% | PBCT | People's United Financial Inc
39% | PACW | Pacwest Bancorp
41% | EA | Electronic Arts Inc
41% | ALLK | Allakos Inc
42% | TDG | TransDigm Group INC
42% | UVE | Universal Insurance Holdings Inc
42% | BCO | Brinks Co
42% | GE | General Electric Co
42% | XHR | Xenia Hotels & Resorts Inc
44% | HWM | Howmet Aerospace Inc
44% | ROK | Rockwell Automation Inc
44% | ALT | Altimmune Inc
44% | GBT | Global Blood Therapeutics Inc
44% | ARWR | Arrowhead Pharmaceuticals Inc
45% | BLKB | Blackbaud Inc
45% | XPO | XPO Logistics Inc
45% | ZAGG | ZAGG Inc
45% | CARS | Carscom Inc
46% | HAL | Halliburton Co
47% | WBA | Walgreens Boots Alliance Inc
47% | ZNGA | Zynga Inc
47% | WEX | WEX Inc
47% | VG | Vonage Holdings Corp
47% | TRC | Tejon Ranch Co
47% | DXC | DXC Technology Co
47% | SBUX | Starbucks Corp
48% | T | At&T Inc
48% | OESX | Orion Energy Systems Inc
48% | VGR | Vector Group Ltd
48% | IBM | International Business Machines Corp
49% | PLCE | Childrens Place Inc
49% | PTC | Ptc Inc
49% | FOE | Ferro Corp

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)