So far in the 2012 proxy season, it had been looking like all the companies that had SOP votes “fail” last year were coming back this year with significantly positive votes in support of their SOP proposals this year, see the April 25, 2012 Blog post. Since then, the support for several SOP votes at companies with 2011 SOP failures have come in under 70%, with one SOP vote that failed to garner more than 50% support:
- Cogent Communications Group, Inc. – 68.45%
- Cooper Industries plc – 29.36% (“failed” SOP)
- Janus Capital Group Inc. – 61.38%
All of these companies will come under closer scrutiny by ISS next year as a result. I imagine that Cooper Industries, with 2 successive years of failed SOP votes (depending on how you count abstentions), will have a difficult time with its shareholders and may have to consider making some substantial changes in order to turn things around next year.
The chart below tracks the votes that have been recorded so far at companies that had SOP votes fail to secure a majority of the votes in their 2011 SOP votes (click on the graphic to expand it to readable size).