say on pay

Say on pay is a term referring to the law in which the shareholders of a company can vote on the compensation of executives and also on general compensation policies. Say on pay votes can be applied to: 

• Remuneration packages of executives
• The company’s compensation philosophy
• Grants of equity to executives
• Performance measures related to compensation
• CEOs’ remuneration ratio to employees
• Short-term and long-term incentives

The Say on Pay role is supported by corporate law and is a common practice in public companies.