According to Institutional Shareholder Services, Valero Energy has become the fifth company this year to have investors support an annual advisory vote on executive compensation. Investors at Ingersoll-Rand, Motorola, Blockbuster, and Verizon Communications have also approved, by a majority or more, so-called “say on pay” advisory votes.
ISS reports that in 2006, seven similar resolutions went to a vote and averaged 40% support. Two bills are currently in Congress (one in the Senate and one in the House) that would require every publicly traded company to allow for an annual advisory vote on executive compensation. The House Bill passed in April. See previous posts about Say on Pay issues here, here, and here.