Background and Overview
ISS’ peer group construction methodology incorporates information from companies’ self-selected pay benchmarking peer groups. Information regarding selected peers, as well as the industry groups that those peers are selected from, are used to influence ISS’ peer group construction process. The methodology continues to maintain a focus on identifying companies that are reasonably similar to the subject company in terms of pay band (Europe only), industry, and size (based on one or more of revenue, assets, and market capitalization).
Download the FAQs for more information on ISS’ Peer Selection Methodology
To prepare for the upcoming meeting season, ISS must construct peer groups before companies’ new proxy disclosures are available, generally based on company-selected peers disclosed in the prior year’s proxy (i.e., for meetings in 2017, ISS will typically use peers disclosed in 2016). However, we may incorporate updated peers for companies that modified their peer groups since their last disclosure or intend to do so as they prepare their 2017 proxy materials.
In an effort to ensure that the most accurate and up to date information is incorporated into our peer group selection process, ISS is offering certain U.S., and Canadian companies (please download the relevant FAQ for coverage universe details) with annual meetings slated to be held between September 16, 2017, and January 31, 2018 for U.S. and Canadian companies an opportunity to inform us of changes to company self-selected peer groups for their next proxy disclosure. We believe that taking this extra step of collecting updated information will help produce a better outcome for investors and issuers alike.
If you have not made or do not intend to make changes to your previously disclosed peer group, or do not wish to provide this information in advance, no action is required.
Starting in 2016, peer submissions are handled via ISS Corporation Solutions’ (ICS) Governance Analytics platform to streamline and consolidate company workflow onto a single platform.
The form available via Governance Analytics allows you to submit your peer group. Please note the following:
- The peer group provided should be the peer group used for benchmarking CEO pay for the fiscal year ending prior to your next annual meeting.
- For U.S. and Canadian companies, if your annual meeting is after January 31, 2018, no action is required as ISS will conduct a separate peer submission process for these companies in late 2017.
- For European companies, the next peer submission process will be in late 2017 for meetings on or after February 1, 2018.
- While public disclosure of this information is not required, our expectation is that the same peers provided to ISS will be disclosed in the upcoming proxy. Significant differences between submitted peers and peers cited for the fiscal year ending prior to your next annual meeting may cause ISS to re-run the peer group and may result in the company not being able to pre-submit peers in future years.
- The ISS research team will use this information only for the purpose of constructing peer groups.
- Submissions should include your complete peer list, selected through the lookup tool provided on the peer submission form.
- Please do not make multiple submissions or submit information other than relevant peers (i.e. those used for benchmarking CEO pay), as this may disrupt accurate submission of your peers.
- Note that, as in prior years, ISS peer groups are not finalized until our research is published.