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Say-on-pay Votes


Definition: Say-on-pay Votes is the practice of allowing shareholders to cast non-binding advisory votes on proposed executive pay structures during annual shareholder meetings.
The impact of say-on-pay votes extends beyond mere symbolic gestures, as they have catalysed notable changes in executive pay practices. Companies facing significant opposition to proposed compensation packages quite often re-calibrate their strategies in response to shareholder feedback. This may involve revising compensation structures, altering performance metrics, or enhancing transparency in pay disclosures.


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