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New York N.Y., June 26, 2014 –– Shareholder support for executive compensation plans has declined in 2014 at mid-cap, small-cap and micro-cap companies, evidenced by the latest edition of ProxyPulse™, the joint publication from Broadridge Financial Solutions, Inc. (NYSE:BR) and PwC’s Center for Board Governance.
In an analysis of 2,788 shareholder meetings held between January 1 and May 22, Broadridge and PwC found that say-on-pay proposals failed to receive majority support at 72 companies - compared to 54 companies in 2013. “This trend points to the significant pressures boards still face around executive compensation,” said Mary Ann Cloyd, Leader of PwC’s Center for Board Governance.
The report shows that average support levels for executive compensation plans rose to 91% from 89% at large-cap companies, but a greater percentage of mid-cap and small-cap companies failed to attain at least 50 percent shareholder support. Five percent of mid-cap companies failed to reach majority support so far in 2014, up from 2 percent in the 2013 proxy season.
The analysis also found high levels of shareholder support for directors.
”The results show that when it comes to corporate governance, executives and directors must remain vigilant and engaged,” said Chuck Callan, SVP Regulatory Affairs, Broadridge Financial Solutions.
Key 2014 developments include:
ProxyPulse is a collaboration of Broadridge, the leading provider of investor communication solutions for financial services firms, mutual funds and corporate issuers globally, and PwC's Center for Board Governance, a group within PwC whose mission is to help directors effectively meet the challenges of their critical roles.
The analysis is based upon Broadridge's processing of shares held in street name, which accounts for over 80 percent of all shares outstanding of publicly listed companies in the U.S. Visit proxypulse.com to access the full version of the ProxyPulse report.
Broadridge Financial Solutions, Inc. (NYSE:BR) is the leading provider of investor communications and technology-driven solutions for broker-dealers, banks, mutual funds and other corporations. Broadridge’s investor and customer communications, securities processing and managed services solutions help clients reduce their capital investments in operations infrastructure, allowing them to increase their focus on core business activities. With over 50 years of experience, Broadridge's infrastructure underpins proxy voting services for over 90% of public companies and mutual funds in North America and processes on average $5 trillion in equity and fixed income trades per day. Broadridge employs approximately 10,000 associates in 14 countries.
For more information about Broadridge, please visit www.broadridge.com.
About PwC's Center for Board Governance
PwC's Center for Board Governance is a group within PwC whose mission is to help directors effectively meet the challenges of their critical roles. This is done by sharing governance leading practices, publishing thought leadership and offering forums on current issues.
For more information, please visit http://www.pwc.com/US/CenterForBoardGovernance.