(We’re back with our third installment of the AGM voting results, which we’ll continue to provide through June. This week’s covers the voting through May 22nd.)
Proxy season rolls on, with nearly 300 of the S&P 500 now having reported their AGM results year-to-date – and we’re likely now at a sufficient sample size to be able to generalize about shareholders’ opinions. 2018 is not necessarily a year of shareholder “revolt” – but certain issues, particularly in the Environmental and Social realm, are seeing additional shareholder opposition – see the table below for more details.
We’re seeing a few outliers on specific votes this year that should be mentioned alongside the broad community. Wynn Resorts recorded just 19.9% of shareholders supporting its say-on-pay resolution, the lowest we’ve witnessed in the market since Mylan N.V. recorded a 16.4% support level in 2017, and one of the five lowest totals reported by an S&P 500 company in the last five years. Elsewhere in the compensation realm, three companies (Hasbro, Moody’s, and Verizon) saw low support for management’s position regarding shareholder proposals on exec comp clawbacks – 56%, 61%, and 64% support, respectively.
The most successful shareholder proposals to date appear to be in the shareholder rights realm. Four have now received majority support of voters – Kansas City Southern, Gilead Sciences, and HP Inc. all saw over 50% of votes in support of proposals to allow shareholders to act by written consent, and Cummins Inc. received 50.4% support on a proposal to allow shareholders to call special meetings. Companies that haven’t given shareholders these rights previously may want to review their structures, as shareholders continue to express heavy preferences for these type of provisions.
Get the full report: S&P 500 AGM Voting Results for 1/1/18 – 5/22/18
See last week’s report: S&P 500 AGM Voting Results for 1/1/18 – 5/15/18
See the 5.08.18 report: S&P 500 AGM Voting Results for 1/1/18 – 5/08/18