This Research Spotlight provides a summary of the academic literature on how shareholder voting on executive compensation plans influences executive pay. It reviews the evidence of: The impact of “vote no” campaigns, the impact of shareholder voting on equity compensation plans, the market reaction to say-on-pay legislation and proposals, and the impact of say on pay on future pay practices. This Research Spotlight expands upon issues introduced in the Quick Guide CEO Compensation.
Copyright held by David F. Larcker and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
