Issue link: https://digital.shearman.com/i/1512772
Shearman & Sterling LLP IPO Governance Practices | 92 Number of IPOs surveyed 59 61 92 62 32 143 271 50 2017 2018 2019 2020 2021 2022 Comparing IPOs from 2016 to 2022 ISS initiated voting policies in 2015, updated in 2017, with respect to newly public companies, designed to influence the governance practices of companies considering an IPO in the United States by recommending a vote against directors of newly public companies due to the adoption of governance policies that diminish shareholder rights. We look back on our surveys of IPO companies since 2016 to consider whether the voting policies have had a significant impact over time. Foreign private issuers, SPACs, master limited partnerships and REITs were excluded. In the last three years, most IPOs surveyed were on Nasdaq (47 out of 50 in 2022, 205 out of 271 in 2021 and 119 out of 143 in 2020). In prior years, IPOs were roughly evenly split between the NYSE and Nasdaq. IPO Governance Practices IPO companies continue to adopt the corporate governance practices that are disfavored by proxy advisory firms. Companies with Separate CEO and Chairman Roles 56% 92% 94% 64% 55% 65% 64% 50% 2017 2018 2019 2020 2021 2022 Data Data for each year reflects IPOs that closed in the calendar year.