The Evolution of Shareholder Voting for Executive Compensation Schemes

Posted: 8 Sep 2006

See all articles by Angela Morgan

Angela Morgan

Clemson University - Department of Finance

Annette B. Poulsen

University of Georgia - Department of Banking and Finance; European Corporate Governance Institute (ECGI)

Jack G. Wolf

Clemson University - Department of Finance

Abstract

We examine shareholder voting on management-sponsored compensation proposals from 1992 through 2003 to determine how voting has evolved as a result of changes in the corporate governance environment. We investigate three questions: have regulatory changes and changes in investor sentiment affected voting; do the same factors appear to influence voting over time and has the impact of the various factors changed over time; and do additional factors such as the level of compensation and alternate definitions of dilution influence voting support? We find evidence of changing trends in voting, that shareholders have become more sensitive to potentially harmful plan provisions, and that additional factors do affect voting.

Keywords: shareholder voting, governance, compensation

JEL Classification: G32, G34, J33

Suggested Citation

Morgan, Angela and Poulsen, Annette B. and Wolf, Jack G., The Evolution of Shareholder Voting for Executive Compensation Schemes. Journal of Corporate Finance, Vol. 12, pp. 715-737, 2006, Available at SSRN: https://ssrn.com/abstract=928895

Angela Morgan (Contact Author)

Clemson University - Department of Finance ( email )

Clemson, SC 29634
United States
(864) 656-2249 (Phone)
(864) 656-3748 (Fax)

Annette B. Poulsen

University of Georgia - Department of Banking and Finance ( email )

Terry College of Business
Department of Finance
Athens, GA 30602-6253
United States
706-542-4450 (Phone)

HOME PAGE: http://www.terry.uga.edu/directory/profile/apoulsen/

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Jack G. Wolf

Clemson University - Department of Finance ( email )

324-A Sirrine Hall
Clemson, SC 29634
United States
864-656-3954 (Phone)
864-656-3748 (Fax)

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