Bloomberg BNA’s Corporate Law & Accountability Report is available on the Corporate Law Resource Center. This news service keeps corporate practitioners informed of legal developments of...
By Michael Greene
Feb. 10 — Institutional Shareholder Services Inc. has begun applying its new Equity Plan Scorecard approach to U.S. companies, beginning with Ferguson, Mo.-based Emerson Electric Co.
At the electrical equipment manufacturer's annual meeting, shareholders overwhelmingly approved the 2015 Incentive Share Plan proposal, according to the company's Feb. 3 Form 8-K.
ISS stated in its 2015 updated benchmark voting policies that its new scorecard approach provides a “more nuanced consideration of equity plan proposals.” ISS also stated in its update that feedback from institutional investors and corporate issuers in recent years has shown “strong support for the new approach.”
The scorecard approach is based on a combination of factors related to costs, plan features and grant practices, with weights of 45 percent, 20 percent and 35 percent given to each factor, respectively.
Subodh Mishra, a spokesman for ISS, stated in an e-mail to Bloomberg BNA that “about one-third of companies we cover (e.g., ca. 1000 of the Russell 3000 in any given year) submit equity plan resolutions that would be subject to the new EPSC policy.”
According to a blog post from McGuireWoods LLP, Emerson’s proposal to approve the plan seemed “drafted with an eye to the Equity Plan Scorecard.”
To contact the reporter on this story: Michael Greene in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan Tuck at email@example.com
Emerson's proposal is available at http://www.sec.gov/Archives/edgar/data/32604/000003260414000052/emersonproxystatement2015a.htm#sa0e2ec5152cb4564a1bd424f2bb7feff.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)