Rendre compte de la rémunération des dirigeants : qu’attendre du say on pay ?

The AFEP-MEDEF corporate governance code amended in 2013 introduces the say on pay principle, which grants shareholders the right to vote on executive remuneration at annual general meetings. This paper aims at reviewing the studies undertaken in countries that have established this principle for several years. Say on pay proposals are rarely voted down, but a marked increase in the sensibility of CEO pay to performance is observed for those companies that experienced high voting dissents. The major impacts of say on pay are a better dialogue between shareholders, CEOs and boards in advance of annual meetings as well as an increase in proxy advisory influence.