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By Che Odom
Jan. 29 — Sixty-one companies failed say-on-pay in 2015, the highest number of negative votes in any year since they were first required to be held in 2011, a new report finds.
Semler Brossy Consulting Group examined vote results at Russell 3000 companies last year and discovered that 2.8 percent of them saw negative say-on-pay shareholder votes, according to its report released Jan. 27.
The next highest failure rate of 2.6 percent occurred in 2012, while 2014 recorded a failure rate of 2.4 percent, the report said.
The good news for companies is that an overwhelming majority of them—97.2 percent—registered positive votes, the report said. On average, 91 percent of shareholders voted to approve executive compensation plans last year, it added.
Under the Dodd-Frank Act, public companies are required to hold advisory shareholder votes on executive compensation packages and file the results with the Securities and Exchange Commission.
Of companies that have held votes every year since 2011, most have passed all five years, the report said. Roughly 9 percent of issuers have failed at least once.
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The report is available at http://www.semlerbrossy.com/wp-content/uploads/SBCG-2015-Year-End-Say-on-Pay-Report.pdf.
|Name||Industry||CEO||Top Institutional Investors|
|BankUnited Inc.||Financial Services||John Adam Kanas||Wellington Mgmt. Grp., Vanguard, BlackRock|
|Biglari Holdings Inc.||Hotels & Leisure||Sardar Biglari||Oz Mgmt., BlackRock|
|Celadon Group||Road & Rail||Paul A. Will||BlackRock, Wellington Mgmt. Grp.|
|Fidelity National Financial Inc.||Financial Services||Raymond R. Quirk||William Foley, Raymond Quirk, Frank Willey|
|Hain Celestial Group||Food Products||Irwin David Simon||BlackRock, Vanguard|
|Kate Spade & Co.||Retail||Craig A. Leavitt||Goldman Sachs Grp., FMR|
|Nuance Communications Inc.||Software||Paul A. Ricci||Icahn Assocs. Holding, Clearbridge|
|Shutterfly Inc.||Technology||Jeffrey T. Housenbold||Primecap Mgmt., Fine Capital Partners|
|TiVo Inc.||Software||Thomas S. Rogers||Putnam Invest., Vanguard, BlackRock|
|United Therapeutics Corp.||Biotechnology||Roger A. Jeffs||BlackRock, Fidelity Mgmt. & Research|
|Walter Energy Inc.||Mining||Walter J. Scheller III||Alden Global Capital, CalPERS|
|Sources: Bloomberg & Semler Brossy Consulting Group|
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