For the second year in a row, a survey of the 100 largest public companies in the United States found that most of them are responding to shareholder pressure for improved corporate governance and a voice when it comes to executive pay.
According to Law.com's In House Counsel, the latest Shearman & Sterling corporate governance survey found that 71 analyzed companies now require directors to win a majority of shareholder votes, even in uncontested elections. Two years ago, only 11 of the analyzed companies had a similar requirement.
Moreover, this year's survey indicated increasing "shareholder activism," Shearman & Sterling mergers and acquisitions partner John Madden said. For instance, shareholders in 89 of the surveyed companies submitted executive pay proposals, and shareholders of 41 of them now have an advisory vote on compensation issues, or "say on pay" provisions.