Four in 10 investors believe ‘say on pay’ vote has no influence

WASHINGTON (MarketWatch) — More than four in 10 institutional investors say their “say on pay” vote doesn’t end up influencing how company executives are paid, according to a new study from Stanford Graduate School of Business.

Perhaps equally worrisome for small investors, who rely on money managers to represent their interests, just one in four of those professionals said they understand the way executives will receive payouts under long-term performance plans.

The findings come after the Securities and Exchange Commission in 2011 began requiring nonbinding shareholders vote on executive compensation at least once every three years, under the Dodd-Frank financial reform law.

Feb 17, 2015, Eric Garcia, Reporter

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