When a stock plan proposal is put forth to shareholders for a vote – whether it’s to modify an existing plan, add shares, or implement a new plan – there’s a moment of hoping that the company did all the right things to maximize the likelihood of gaining strong shareholder support for the proposal.
If you’re wondering how other companies fared with their stock plan proposals, management consulting firm Compensia has some answers. The firm recently released their analysis of a subset of proposals from this year’s proxy season in a Thoughtful Pay Alert (Stock Plan Proposals at the Tech 150, September 6, 2018). Their review covered the proxy statements of 150 publicly traded tech companies.
Some highlights of the Compensia review include:
Decline in proposals. While the number of stock plan proposals declined in 2018, that’s not a surprising result due to a high number of stock plan proposals in the prior year, 2017. Since companies don’t typically submit proposals each year, it makes sense that the number of proposals would decline in the year following a high number of proposals.
Fungible share provisions. Nearly 58% of the Tech 150 stock plan proposals submitted during the review period included a fungible share provision.
100% Approval Rate. All stock plan proposals evaluated in this review were approved with high levels of shareholder support (the average level of support was 88% of the votes cast). This has been a consistent trend over several years, as companies seem to have figured out the right formula to incorporate feedback from proxy advisory firms and institutional shareholders.
ESPPs are represented. 12% of the Tech 150 companies submitted proposals involving an ESPP.
For more insights on the Tech 150 stock plan proposals for this year, view the full Thoughtful Pay Alert.
Trends in Stock Plan Proposals
With a new proxy season on the horizon, it’s timely that management consulting firm Compensia published results of an analysis they performed on stock plan proposals at 150 publicly-traded...Read More
Employee Shareholders Become Activists
One of the primary goals commonly cited in equity programs is that of aligning employee and shareholder interests. Another is just simply turning employees into shareholders. Yet it’s not oft...Read More
Counting Shareholder Votes: Avoid Common Mistakes
It’s proxy season and for many companies, this is the time of year when various proposals are put forth to shareholders for their vote. It all seems straightforward – the proposals are ...Read More
Five Things to Know About the 2019 ISS Equity Plan Scorecard
ISS has announced several changes to the Equity Plan Scorecard for the 2019 proxy season. Here are the four most significant changes plus one thing that hasn’t changed.
Trends in Equity Plan Proposals
If you're feeling curious about how equity plan proposals are performing with shareholder votes, today's blog has answers. Semler Brossy recently released their 2016 report on Read More