Over One-Third of Companies Receive Poor Compensation Rating
Haverford, PA - Egan Jones Proxy Services announced today that during Proxy Season 2015, in excess of 33.3% of companies covered with a Say-on-Pay vote received a "Below Average" or lower Compensation Rating as well as a matching "AGAINST" vote recommendation for Say-on-Pay.
The Egan-Jones Compensation Rating is a sophisticated yet simple 21st Century approach to evaluating compensation at public companies. Companies are required to meet meaningful performance and governance thresholds in order to receive an acceptable Compensation Rating.
"It is unfortunate that so many companies continue to over-compensate their CEOs in relation to performance even today. When the shareholders are losing tens of millions, the CEO generally shouldn't be receiving a compensation package worth tens of millions of dollars or more," said Kevin McManus, Director of Egan-Jones Proxy Services.
Egan-Jones will continue to improve and expand its ratings for governance issues over the coming months.
Egan-Jones Proxy Services is part of Egan-Jones Ratings Company, a Nationally Recognized Statistical Rating Organization (NRSRO).