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| Vol. 1 | Issue. 2 | October 2011 |
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| Say on Pay in 2011, and What to Expect in 2012 | The first year of mandatory say on pay has been a learning experience for all of us, but 2012 will tell us how well we have learned our lessons.
With the Council of Institutional Investors, Farient Advisors recently released a report analyzing investor motivations to vote against say on pay at companies where the proposal failed to receive majority support at 2011 annual meetings. The report
draws on data from 37 companies, as well as interviews with institutional investors, investment management firms, proxy advisors and solicitors, and company officials. Read "Say on Pay: Identifying Investor Concerns" for critical insights on which executive pay practices are viewed as detrimental to long-term shareowner value. Robin Ferracone, Executive Chair of Farient Advisors, elaborates on the findings in a Harvard Business Review blog post, explaining why we should expect the proportion of failed say on pay companies to increase in 2012. | |
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 | In her "Executive Pay Watch" blog, Robin Ferracone provides insight into Apple's succession process by analyzing the company's history since it went public in 1980. |  |
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 | The National Association of Corporate Directors' (NACD) named its 2011 Directorship 100, a list of the most influential people in the boardroom and the corporate governance arena. Robin Ferracone was one of seven compensation professionals elected to the list. | |
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| Trend Spotting | |
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Say on Pay in 2011 - What's Behind the "No" Votes?
* pay for performance disconnect: 92 percent
* poor pay practices: 57 percent
* poor disclosure: 35 percent
* and reasonableness of compensation: 16 percent
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Farient Advisors, LLC
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We are an independent consulting firm that helps clients make performance-enhancing and defensible compensation decisions in the best interests of their shareholders.
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