ISS Announces QuickScore 2.0 & Opens Data Verification Portal

A New Year Brings an Updated ISS Governance Methodology: ISS Announces QuickScore 2.0 & Opens Data Verification Portal

January 10 2014

CoverThis week ISS announced an update to its governance risk scoring system, ISS Governance QuickScore.  ISS Governance QuickScore 2.0 will officially launch on February 18th, when scores will be made available to institutional investors, all covered companies, and also displayed on ISS’ proxy research reports.

QuickScore 2.0 includes new governance factors as well as modified weightings assigned to certain governance factors.  While the factors have not been disclosed at this time, we do know that seven new factors were added for U.S. companies.  Companies will continue to be scored on an overall basis and across four independent dimensions (“pillars”): board, compensation, shareholder rights, and audit. And as before, decile scores will indicate rank relative to region, with a score of 1 indicating relatively lower governance risk, and, conversely, a score of 10 indicating relatively higher governance risk.

ISS also indicated that the scoring of questions and pillars has been modified to “better align with company performance quantitative modeling results and ISS voting policy”.  A technical document, which will outline key changes to the methodology and new governance factors being included in QuickScore 2.0, will be available on January 27th to correspond with the beginning of the data validation period.

QuickScore 2.0 also includes event-driven data updates, meaning ISS will monitor select regulatory filings and other disclosures for governance-related information and will automatically update relevant QuickScore 2.0 factors and scores.

From January 27th until February 7th, companies have the opportunity to preview and verify that ISS has collected accurate and up-to-date data for governance factors included in QuickScore 2.0 on ISS’s free data verification portal.  Requests for data changes are made through this portal and all requests are reviewed and responded to by ISS.

Companies may also access the data verification site anytime between now and the QuickScore 2.0 preview period start date (January 27th) to view the current data underlying QuickScore 1.0.

After the February 18th launch, the data verification site remains dynamic so your company can update and re-verify QuickScore 2.0 data throughout the year.

Action Items
We strongly encourage companies to review their ISS Governance QuickScore by the February 7th deadline in order to correct any errors prior to publication.  We also recommend on-going monitoring of the QuickScore data verification site, particularly when new regulatory filings and other governance-related disclosures are released.  If you wish to discuss further, please don’t hesitate to contact us.  If you need a log-in ID to the free data verification site, you may contact ISS directly at: support@isscorporateservices.com.

Links
ISS QuickScore
ISS Governance QuickScore Data Verification

 

Contact
Joseph Sorrentino
212-488-5400
jsorrentino@shallpartners.com