Findings in the just released 2011 BNY Mellon Shareowner Services Annual Meeting Study show that for the annual meeting season just ended, expectations for major changes continue to outpace actual shareholder voting results.
Based on an in-depth internal analysis of data from Shareowner Services relationship managers on more than 500 client meetings during the 2011 proxy season, the 2011 Annual Meeting Study includes findings on the type and number of proposals voted on; the impact of proxy rule changes requiring votes on executive compensation and the frequency of such votes, known as Say on Pay (SOP) and Say When on Pay (SWOP); and other governance matters.
The study found that the majority of SOP votes were approved by shareholders. SOP and SWOP voting requirements didnt have a dramatic impact on companies anticipated voting results, according to BNY Mellon. SOP and SWOP requirements increased the number of proposals on most 2011 ballots.
SWOP votes showed a preference for annual voting, according to the study. Clients holding meetings were generally held in May, and companies favored smaller and simpler annual meetings with less extravagant venues and formats.
“With new SEC rules mandated by Dodd-Frank taking effect for the first time this year, there were predictions throughout the industry about potentially dramatic impacts of SOP and SWOP, increased shareholder activism and the prospect of more contentious meetings,” says Kevin Brennan, managing director and head of sales and marketing communication for BNY Mellon Shareowner Services. “Our data reporting on client experience across more than 500 client meetings clearly shows that these concerns were largely groundless, with the majority of management-supported SOP proposals approved by shareholders.”
(CM)