European pay-for-performance methodology and U.S. unilateral board actions at dual-class IPO companies among proposed voting policy changes subject to comment
ROCKVILLE, MD (October 27, 2016) – Institutional Shareholder Services Inc. (“ISS”), a leading provider of corporate governance and responsible investment solutions to the global financial community, today announced the launch of its 2017 benchmark voting policy consultation period. The open comment period, which will solicit views from governance stakeholders globally on certain proposed voting policies for 2017, will run through 6:00 p.m. ET on November 10.
To ensure its benchmark voting policies take into consideration many perspectives, including the views of global institutional investors and those of the broader corporate governance community, ISS gathers input each year from asset owners and managers, companies, and other market constituents through a variety of channels and mediums. Following the release last month of its 2017 policy survey results, ISS is now making available for public comment certain proposed benchmark voting policy changes for 2017.
Specifically, ISS is requesting feedback from interested market constituents on new or potential changes to 15 voting policy areas, including those covering: General Share Issuance Mandates (U.S.-Listed Cross-Market Companies); Restrictions On Binding Shareholder Proposals (U.S.); Executive Pay Assessments (U.S. Cross-Market); European Pay-for-Performance Methodology, Director Overboarding, Non-Executive Director Pay (Europe); Remuneration, Audit and Remuneration Committee Composition for Smaller Companies (U.K. & Ireland); Creation of Advisory Posts (Japan); Director Elections (Asia Ex-Japan); Director Elections (Taiwan); Board Independence in Brazil (Nivel 1 And Traditional Listing Segments); Board Independence Latin America (Argentina, Chile, Colombia, Mexico, Peru); Unilateral Board Actions – Multi Class Capital Structure at IPO Companies (U.S.); and Director Compensation (Canada). Download the comment period documents here.
Comments will be taken into consideration as ISS finalises the updates to its benchmark voting policies to be applied for shareholder meetings taking place on or after Feb 1, 2017. ISS expects to announce its final 2017 benchmark policy changes during the second half of November.