Leading proxy advisory firm, Institutional Shareholder Services Inc. (ISS), announced Nov. 8 that it would supplement its methodology underlying its pay-for-performance models for companies in the U.S., Canada and Europe, effective Feb. 1, 2017.
While ISS will continued to use the metric of total shareholder return (TSR) in its evaluations, ISS will also take into account six additional financial metrics:
The announcement comes after the results of ISS’ 2017 global benchmark policy survey showed that investors would be highly supportive of using metrics beyond TSR to evaluate pay-for-performance. The survey showed that 79 percent of investor respondents would either support or strongly support the use of additional metrics.
For U.S. companies, in particular, ISS pointed out the following pay-for-performance updates:
In addition, according to ISS, its “peer submission window will be open starting on Nov. 28, 2016, and will close on Dec. 9, 2016, for eligible companies, including those subject to the new pay-for-performance measures.”
This announcement comes as ISS continues to accept comments on its proposed 2017 draft policy changes. Comments on the proposed changes are due by firstname.lastname@example.org. ISS will release its final 2017 voting policies the week of Nov. 14 and these policies will apply to shareholder meetings taking place on or after Feb. 1, 2017.
Finally, ISS last week opened its data verification period for its governance rating platform formerly known as QuickScore. The product will be rebranded as QualityScore Nov. 21 and data verification for covered companies will be open until Nov. 11.
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