Support for a shareholder advisory vote on executive compensation is losing steam in the financial services sector, according to a report released today by The Corporate Library of Portland, Me.
While shareholder support for “say on pay” proposals is growing in general — to 42% this year from 41% in 2007 — the proposal lost support at eight banks and wirehouses that voted on such initiatives in both years.
Those firms are Capital One Financial Corp. of McLean, Va., Citigroup Inc. of New York, JPMorgan Chase & Co. of New York, Merrill Lynch & Co. Inc. of New York, Morgan Stanley of New York, U.S. Bancorp of Minneapolis, Wachovia Corp. of Charlotte, N.C., and Wells Fargo & Co. of San Francisco.
The average support for say on pay proposals at those companies decreased 4.9% year-to-date.
A dip in the amount of compensation for the chief executives of those companies may be a factor in the decline, Damion Rallis, research associate and author of the report, said in a statement.
“It is possible that these facts have played a role in the decreased shareholder support for ‘say on pay’ at these financial institutions,” he said.
The Corporate Library is an independent research firm that tracks corporate governance and executive compensation information.
Its database has information on more than 3,200 companies.