Bloomberg: ‘Earnings Hysteria’ Pits ISS Against Clinton and Fink on CEO Pay

Bloomberg: ‘Earnings Hysteria’ Pits ISS Against Clinton and Fink on CEO Pay

August 24 2016

 

Excerpt:

Institutional Shareholder Services has unintentionally taken on Hillary Clinton and Larry Fink.

At the moment, ISS is winning.

The proxy adviser, whose customers control a combined $25 trillion in assets, has helped drive the trend toward rewarding executives for share-price gains. Today, more than half the chief executive officers of S&P 500 companies receive compensation partly determined by shareholder return, according to Equilar Inc. That’s doubled since non- binding “say-on-pay” shareholder votes on compensation were introduced in 2011.

“ISS has been a major influence,” said Joe Sorrentino, managing director at executive compensation firm Steven Hall & Partners.

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