Despite the articles lauding the "insight" that the pay ratio disclosures will bring in 2018, this week ISS and a UK Shareholder group expressed doubts about the pay ratio's ability to provide useful information in a Bloomberg article examining how investors may use the disclosure.
The Overly Burdensome and Politically-Motivated Requirement Will Provide No Meaningful Data to Investors.
The Center On Executive Compensation filed comprehensive comments with the SEC on its prescriptive rule on pay for performance, noting that "it fails to provide a clear picture of the pay for performance link," likely creating "confusion and misunderstanding among shareholders" and urging a principles-based approach instead.
As of April 1, 2015, the 2015 Proxy Season is seeing measurably lower say on pay trends with companies averaging only 91.85% shareholder support, down from 95.13% at this point in 2014.
According to Center Research, in 2014, not a single S&P 500 company with CEO Pay Summary Compensation Table Total Pay under $10M failed to receive majority say on pay support.