Executive Compensation Shareholder Proposals Down In 2014

A new Conference Board report on proxy voting in 2014 reports a decline in shareholder proposals on executive compensation matters.  Among Russell 3000 and S&P 500 companies, the 70 compensation-related proposals was down from 86 proposals in 2013.  Almost 70% of the proposals involved either requiring equity retention periods or limits on golden parachute payments.   A couple of notes:

• There was majority support for 5 of the golden parachute proposals and 1 of the equity retention proposals.
• Support increased for clawback and SERP limit proposals, but measured on a small number of proposals (3 clawback and 2 SERP proposals).
• 2014 saw a complete lack of proposals on tax gross ups (consistent with the decreased use of gross ups).