Are Top Investors Listening To Proxy Advisors On Pay?

New research from Proxy Insight demonstrates significant divergence when proxy advisers recommend against Say on Pay

Large investors are not following the recommendations on executive compensation set out by Proxy Voting Advisers (”PVA”), a study by data company Proxy Insight has found.

Proxy Insight analyzed voting on Advisory Say on Pay (”SoP”) resolutions in the US and UK in 2015 and 2016 for 10 of the largest institutional investors and compared each vote to the recommendations from ISS and Glass Lewis. While voting by top investors correlated with ISS 90% of the time and Glass Lewis 83% of the time for all SoP resolutions, the link is drastically reduced for votes where ISS and/or Glass Lewis recommend against a SoP proposal.

Correlation between...