Share:

Read the full Alert by clicking below:

 PDF

On November 19, ISS released policy updates applicable to public companies with annual shareholder meetings on or after February 1, 2019, and on November 21 preliminary Frequently Asked Questions (FAQs) were released. The compensation-related policy updates impact say-on-pay proposals in the U.S. and Canada. The policy updates confirm ISS will not be introducing Economic Value Added (EVA) performance factors to the 2019 quantitative pay-for-performance test; however, EVA metrics will be featured in ISS’ research reports on a phased-in basis for informational purposes. The FAQs confirm no changes to the screens in the quantitative pay-for-performance test components, introduce a new “overriding” factor for equity plan evaluations, and indicate that ISS’ policy on director pay evaluations will be revised, with no adverse vote recommendations issued until 2020.

Share: