Say-on-Pay proposals provide an opportunity for communication with companies
One way Praxis represents our values on the issue of income and wealth inequality is through our votes on executive compensation packages. Management Say-on-Pay proposals are an opportunity for investors to weigh in on the compensation awarded to companies’ top executives. These proposals are required to appear on the ballot of most U.S. companies annually.
Voting against a Say-on-Pay proposal is a signal we can send to a company when we believe its top executive compensation policies are excessive, there is a misalignment between CEO pay and company performance, problematic pay practices, or poor communication with shareholders on compensation issues.
During the 2023 proxy season, Praxis voted on 1,172 Say-on-Pay proposals, voting in favor of 58% and against 42% of them. This is in line with our votes from recent years. Praxis voted against the executive compensation packages at Amazon, Apple, and JPMorgan Chase in 2023, to name a few examples.
According to ISS, a leading provider of proxy voting services, in the past year median CEO pay levels in S&P 500 and Russell 3000 companies decreased for the first time since 2015. This may explain why fewer Say-on-Pay proposals failed in 2023. However, average support levels for these proposals extends a downward trend as investors, including Praxis, scrutinize CEO pay levels.
Praxis will continue to carefully analyze corporate pay packages and vote against those we believe are egregious. Our actions reflect our core values of exhibiting responsible management practices and demonstrating a concern for justice in a global society.
Amazon, Apple and and JPMorgan Chase are held in the Praxis Value Index Fund, while Amazon and Apple are held in the Praxis Growth Index Fund ,and Apple and JPMorgan Chase are held in the Praxis Impact Bond Fund.
Shareholder advocacy in action
At Praxis, our investments generate a competitive financial return and deliver a clear and direct benefit to people and our planet. We believe it is our responsibility to encourage companies toward responsible business behavior.
Disclosure
As of July 31, 2023, the Praxis Value Index Fund has invested 3.45% of its assets in Amazon, 0.08% in Apple, and 2.53% in JPMorgan Chase; the Praxis Growth Index Fund has invested 2.30% of its assets in Amazon, and 14.64% in Apple; the Praxis Impact Bond Fund has invested 0.39% of its assets in Apple, and 0.74% in JPMorgan Chase. Fund holdings are subject to change. To obtain holdings as of the most recent quarter, visit praxismutualfunds.com.
