This article was first published on Insightia’s Voting module. For more information about the product, click here.
Shareholders failed to support the “say on pay” proposal at JP Morgan Chase & Co.’s annual meeting on Tuesday, with media reporting that only 31% of votes were cast for the proposal.
The unusual rebuke contrasted with more than 90% support in each of the last two years, and a 72% support rate in 2019, according to Insightia’s Voting module.
JP Morgan typically faces strong support for shareholder proposals to improve its corporate governance, particularly arguments for improved special meeting rights or a separation of the chairman and CEO roles, albeit without reaching majority support.
In the run-up to the meeting, JP Morgan had issued a special plea for support, which argued that CEO pay was strongly tied to stock performance. However, investors clearly felt that a one-off award to CEO and Chairman Jamie Dimon in July 2021 was not justified.
Proxy advisory firms Institutional Shareholder Services and Glass Lewis reportedly recommended against the pay resolution.