Institutional investors, including sovereign wealth funds, commonly evaluate executive compensation awards for potential shareholder dilution and key-person risk and may oppose such awards on those grounds.
November 06, 2025
high
investor_behavior
Explains typical considerations influencing institutional investor voting on compensation proposals.
In later stages of a credit cycle or in loose-credit environments, institutional investors may perform less due diligence and consequently increase exposure to credit risk, which can lead to a subsequent period of intensified risk assessment when problematic loans emerge.
October 20, 2025
high
temporal
Behavioral pattern observed across credit cycles linking credit availability, investor due diligence, and later risk discovery.
Institutional investors evaluate executive compensation proposals based on factors including the total size of the award, shareholder dilution, mitigation of key-person risk, and the perceived alignment of executives' interests with shareholders.
high
corporate_governance
Common criteria cited by asset managers and sovereign wealth funds when deciding how to vote on pay proposals.