More and more, traders seem like recognizing that, usually voting in opposition to pay packages at S&P 500 firms the place CEOs get tens of tens of millions in compensation yearly. Monetary providers is considerably of an exception, nevertheless, with shareholders “extra inclined than they need to be to assist pay,” Weaver stated.
Whereas “say-on-pay” votes have been happening for greater than 10 years — a results of the Dodd-Frank Act — their outcomes are nonbinding. The outcomes can put strain on company boards to make adjustments, as administrators who fail to rein in govt pay will be voted out.
Over the previous 5 years, firms have needed to disclose the ratio of CEO pay to that of their median-paid employee, a requirement put in place by the Securities and Alternate Fee underneath Dodd-Frank.
