Governance Risk Indicators

Key Dates for Transition to GRId 2.0

Monday, February 20, 2012 at 9:00 AM EST: ISS will post a preview of updated GRId 2.0 data profiles for U.S. companies. Company representatives are encouraged to access their free GRId profile available through ISS’ data verification site and to use this online tool to inform ISS of any data corrections.
o ISSUERS: To obtain your data verification user name and password, please contact us by email or by calling 301 556 0570.

Monday, February 20 – Thursday, February 23: ISS will research, verify and subsequently accept or reject any corrections submitted through the data verification tool.

Monday, February 27 at 9:00 AM EST:The entire GRId universe of U.S. companies will be scored under version 2.0 and published. If a company had submitted a data verification request during the preview period, they will receive email notification of changes accepted or rejected at that time.

Two years ago, ISS launched Governance Risk Indicators (GRId) as a new measure of governance-related risk. GRId drew on ISS’ long experience in providing rigorous, market-specific evaluations of companies’ corporate governance practices, and represented a new and unique approach to modeling governance risk.

GRId 2.0 represents a next step in the evolution of governance ratings.

The initial launch in February 2012 will include content and methodology updates for the U.S., with updates to other markets, and coverage of new markets in Europe and Asia-Pacific to follow in the third and fourth quarters.

For more information on the GRId methodology and the launch of GRId 2.0, please read the Technical Documents and FAQs below.

If you would like more information on Governance Risk Indicators, email the GRId team, or call 301-556-0540.

Governance Risk Indicators

GRId ratings identify and evaluate a company's key governance practices across four dimensions: Audit, Board of Directors, Compensation/Remuneration and Shareholder Rights.

GRId provides critical information across the investment process, supporting investors by allowing them to:

Flag portfolio companies with governance-related concerns;
Screen and identify companies with particular combinations of governance practices;
Access governance-related company tearsheets for engagement purposes; and
Incorporate governance risk factors into the investment decision-making process.

GRId Benefits

Comprehensive data on governance practices at companies worldwide;
Sophisticated screening tools to identify companies of interest;
Datafeeds for integrating data into your investment tools; and
Transparent ratings methodology that reflects market practice and best practice.

For more information on how GRId can help investors, contact us.

Technical Documents

GRId's ratings methodology is transparent and fully described in extensive Technical Documents.

GRId Technical Documents

FAQs

Answers to many of the questions you may have about Governance Risk Indicators as well as details regarding the transition to GRId 2.0.

GRId FAQs for Institutional Investors GRId FAQs for Corporate Issuers

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New from ISS

MSCI Appoints Gary Retelny as President of ISS

New York – September 15, 2011 – MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, announced today that Gary Retelny, a member of MSCI's Executive Committee, has been appointed President of Institutional Shareholder Services Inc. (ISS), the leading provider of corporate governance solutions to the global financial community and a subsidiary of MSCI Inc.

ISS Securities Class Action Services Webinar: Converium

Wednesday, February 22, 2012 - 10:00

22 February 2012, 10:00 AM EST

During the informative webinar lead by Luke Green, Head of Securities Class Action Services Research, the Converium decision was discussed along with the broader implications for global asset recovery.

As outlined in our case brief, the Converium decision in the Netherlands has been gaining global interest as it marks the first time that a European court has approved a class action settlement on an opt-out basis (U.S. style) regarding the securities of a company not based in the Netherlands, whose securities were traded on a foreign exchange, and where the class included few Dutch residents. The settlement, worth an estimated $58.4 million, presents a notable opportunity for asset recovery in its own right. Significantly, it may also demonstrate that investors have legal recourse in Europe even if they are left out in the cold by the changing legal landscape in the United States.

eSecLending and ISS Join Forces to Help Institutional Investors Optimize Securities Lending

BOSTON – January 25, 2012 – eSecLending, a leading global securities lending agent, announced today that it has launched a new service called ProxyValue™, designed to help institutional investors maximize income generated from the lending of securities while ensuring proxy voting fiduciary duties are met.

2011 Proxy Season Review: South Africa

Submitted by root on Thu, 2012-01-12 19:07

This report highlights trends identified during the second half of 2011 with many companies continuing to adapt to the new legislative environment introduced by the Companies Act 2008, which finally came into force in May and the King III code of best practice.

Evaluating Pay for Performance: ISS' Quantitative and Qualitative Approach

Submitted by root on Sun, 2011-12-18 01:21

Investor feedback on the issue of pay-for-performance has indicated a preference for putting the focus on long-term alignment, board decision-making, and pay relative both to market peers and to absolute shareholder returns. As a result, ISS is unveiling a new approach to evaluating pay-for-performance in 2012 for U.S. companies. It comprises an initial quantitative assessment and, as appropriate, an in-depth qualitative review to determine either the likely cause of a perceived long-term disconnect between pay and performance, or factors that mitigate the initial assessment.

Institutional Shareholder Services Names New Head of Securities Class Action Services

Rockville, MD – December 8, 2011 – Institutional Shareholder Services Inc. (ISS), a leading provider of corporate governance solutions to the global financial community, today named Yovanka Bylander as its new Head of Securities Class Action Services. ISS’ Securities Class Action Services business serves more than 300 institutional investment clients, leveraging its large collection of securities litigation case data and its robust claims filing operation to maximize investors’ class action recoveries.

ISS Webinars: Policy Updates for 2012

Tuesday, December 6, 2011 - 14:00

December 6, 2:30 PM GMT, 3:30 PM CET and December 7, 11:00 AM EST

As you prepare for the 2012 proxy season, please join ISS for replays of two informative webinars on the updates to ISS' benchmark proxy voting policies for Europe, the United States and Canada. ISS experts also provided a preview of the key issues institutional investors and issuers will face in the coming year.

Institutional Shareholder Services Releases 2012 Proxy Voting Policies

Rockville, MD - November 17, 2011 – Institutional Shareholder Services Inc. (ISS), a leading provider of corporate governance solutions to the global financial community, today released 2012 updates to its U.S., Canadian, European, and international benchmark proxy voting guidelines.