Last week, we blogged on the big news of the SEC’s release of helpful guidance on the Pay Ratio (an interpretive release, a press release, and new C&DIs). Also last week, ISS announced the results of its 2017-2018 Benchmark Voting Policy Survey, and even ISS itself was surprised by the results on the one executive compensation issue to make the summary.
Regarding the CEO Pay Ratio, the summary observes, “Somewhat surprisingly, only 16% [of the investor respondents] indicated that they are not planning to make use of this new information. Nearly three-quarters of the investor respondents indicated that they intend to either compare the ratios across companies/industry sectors, or assess year-on-year changes in the ratio at an individual company or use both of these methodologies.”
Non-investors were much less enthusiastic about the Pay Ratio disclosure, with 44% indicating that they are not planning to use the new information. Of course, only the investors get to vote in the proxy statement.
The response to the survey was strong, as ISS received 602 responses to the survey, including 131 investors.