Institutional Shareholder Services (ISS) released an updated set of FAQs regarding its 2014 US compensation policy.
On December 16, 2013, Institutional Shareholder Services (ISS) published a set of updated FAQs regarding its 2014 US compensation policy. The updated FAQs cover:
General executive pay questions.
Financial data: total shareholder return and revenue.
Management say on pay evaluation.
Pay for performance evaluation.
Problematic pay practices.
Frequency of advisory vote on executive compensation.
Advisory vote on golden parachutes.
Equity-related questions.
Notably, the FAQs include:
The impact of an adverse say-on-pay recommendation on equity plan proposals.
The calculation method for "granted pay" that is compared to a CEO's "realizable pay".
The questions and answers covered by the FAQs are intended to provide high-level guidance regarding how ISS will analyze certain issues in the context of preparing proxy analysis and vote recommendations for US companies. However, the FAQs are not a guarantee on how ISS will apply its benchmark policy in any particular situation.