Below is an excerpt from ISS-Corporate’s recently released article “FTSE 350: Board, Committee Chair Shareholder Support Can Signal Governance Concerns”. The full article is available on ISS-Corporate’s resources page.
Director elections on the FTSE 350 over the past five years reveal a growing gap between support for board and committee chairs and all other board members seeking re-election. Board chairs have been receiving lower support than other directors as investors scrutinize their performance more closely and often hold them more accountable for corporate governance concerns at the company.
Institutional investors’ policies have also evolved, with more accountability expected from directors in board and committee chair positions. Despite these issues, directors of FTSE 350 companies continue to enjoy a high level of approval from shareholders, with directors (excluding board chairs) receiving average shareholder support of 98.0% over the past five years.
By:
Karla Silva, Vice President, Compensation & Governance Advisory, ISS-Corporate
Yan Xu, Associate Vice President, Compensation & Governance Advisory, ISS-Corporate
