Investor Stewardship 2024: Key Insights for Corporate Governance

irectors of North America executive compensation at Willis Towers Watson, noted that “overall, it’s been a more favorable environment for say-on-pay votes this year due to improved market conditions and issuers engaging with shareholders throughout the year.” This increased engagement and transparency have helped align executive compensation with shareholder interests, resulting in stronger support for pay packages.
Despite this positive trend, there were still some outliers. For example, some companies faced shareholder dissent on pay packages due to perceived excessive compensation or lack of alignment with company performance. Shareholder engagement and transparency remain crucial in addressing these concerns and ensuring that executive pay reflects company performance and aligns with shareholder interests. As markets continue to fluctuate, it is essential for boards and compensation committees to remain vigilant in overseeing executive pay and ensuring that it is fair, transparent, and aligned with long-term value creation for shareholders.
Overall, the rebound in executive compensation mirrors the broader market recovery, with CEO pay packages reflecting improved performance and shareholder sentiment. By maintaining a focus on transparency, engagement, and shareholder alignment, companies can continue to build trust with investors and ensure that executive compensation remains fair and reflective of company success.