Getting Ready for the Next Proxy Season
2018 FTSE 100 Proxy Review
In preparation for the 2019 proxy season, CGLytics has released its third annual FTSE 100 Proxy Season report. The report provides boards with key insights and takeaways from the 2018 proxy season, in order to aid preparation and ensure companies are adequately prepared to engage.
- The 2018 proxy season saw a higher dissent from shareholders on director re-elections than previous years. This sends a strong message to directors that they will be held directly accountable for their individual actions.
- The report highlights an increasing focus from investors on key governance issues such as disclosure quality, director election, board effectiveness, CEO pay and Environmental Social Governance (ESG) practices.
- Once again CEO pay continued to be a key theme with shareholders concerned with pay equity, transparency, executive pay levels, and pay for performance. In particular, pay for performance is a main area of concern for investors, and the CGLytics study shows that almost a third of the FTSE 100 companies have significant misalignment between pay and performance over a one and three year period.