As we previously discussed, ISS recently released its U.S. Preliminary Compensation Policies FAQ, which provides interested parties an advance view of ISS’ answers to select questions posed to ISS regarding potential changes to its U.S. compensation policies. Updated compensation-related FAQ documents and a methodological whitepaper—which will include a detailed introduction of ISS’ new Economic Value Added (EVA) metrics—will be available in mid-December. These changes are effective for meetings held on or after February 1, 2020. The below summarizes the key changes outlined by the preliminary FAQ.
Changes to the Quantitative Pay-for-Performance Screens for 2020
ISS applies an initial set of quantitative screens followed by a set of qualitative screens when evaluating say-on-pay proposals.