Reporting on executive compensation: what to expect from Say on Pay?

Summary Say on Pay, introduced in France by the 2013 AFEP-MEDEF governance code, allows shareholders to express their views on executive compensation through a vote at the general meeting. This article provides a review of studies conducted in countries where Say on Pay has been in force for several years. Shareholders rarely contest the remuneration submitted to them, but when they do, the sensitivity of remuneration to the company's performance increases. The most tangible effects of Say on Pay are the increase in the influence of consulting firms in voting and the improvement of the dialogue between shareholders, directors and executives upstream.