ISS Announces QuickScore & Opens Data Verification Portal

ISS Announces QuickScore & Opens Data Verification Portal

January 30 2013

Last week ISS announced it will replace ISS Governance Risk Indicators (GRId) with ISS Governance QuickScore, a numeric, decile-based score that indicates a company’s relative rank by region.  Under QuickScore each company analyzed will receive an overall company score, along with separate category scores for board structure, executive compensation, shareholder rights and audit-related practices.  From now until February 15th, companies have the opportunity to review their scores on ISS’s free data verification portal and correct any errors prior to final publication in late February 2013.

Although QuickScore is similar to GRId in concept, it differs in several meaningful ways:

  • QuickScore is a relative assessment against other companies in the same region
    • In the United States, ISS will initiate QuickScore for the top 3,000 companies based on market capitalization with the largest 500 US companies compared separately
      • ISS intends to introduce scores relative to industry sector in the latter half of 2013
  • QuickScore is quantitatively-driven based on correlations between governance factors and key financial metrics
    • Each governance factor scored is weighted based on past correlation with financial results
  • QuickScore replaces GRId’s color-coded concern levels with a numeric, decile-based score
    • Indicates a company’s rank relative to region (i.e. United States)

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