I’ve been working on a research report that analyzes the voting trends on equity compensation plan proposals during 2007-2009 with Reid Pearson of The Altman Group, and discovered something interesting. The equity plan proposal failures seem to be concentrated in just a few industry groups. Here are the top five industry groups for equity plan failures (in order of total number of failures):
1. Semiconductor & Equipment
2. Consumer Services
3. Autos & Components
4. Commercial Services & Supplies
5. Pharmaceuticals & Biotech
The full report should be released by mid-May, and will look in greater detail at the equity plan proposals that failed and discuss the lessons that can be learned by these failures.