Client Alert: Results of ISS’ 2013-2014 Policy Survey
ISS recently released the results of their annual survey of institutional investors and companies on emerging corporate governance issues. ISS considers the survey a critical component of its annual policy review and formulation process.
In contrast with last year’s survey which focused on numerous executive compensation topics (e.g. peer group selection, measuring pay including granted vs. realizable pay, pay for failure, and executives’ and/or board members’ pledging of company stock), this year’s survey concentrated on broader high-level corporate governance themes including board responsiveness, director tenure/rotation and director assessment, with the primary executive compensation survey questions relating to equity plan evaluations. One theme that continued from last year’s survey results: the sometimes dramatic differences in opinions held by those in the investment community vs. companies.