Proxy adviser ISS recommends vote ‘against’ executive pay at Alphabet – Reuters

Institutional Shareholder Services (ISS) has recommended shareholders of Google-parent Alphabet Inc to vote “against” the company’s proposed executive pay at its annual meet in June, according to a report seen by Reuters on Thursday. “The compensation committee has demonstrated poor stewardship of pay programs as evidenced by recurring concerns of outsized awards that are not…

ISS: 2020 Climate Policy Proxy Voting Guidelines

ISS has released its new climate policy recommendations for voting proxies. The full text is below. An excerpt: Sustainability Reporting The concept of sustainability is commonly understood as meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. Indeed, the term sustainability is complex and poses…

ISS Comment on SEC Draft on Proxy Advisors

The ISS comment on the SEC’s proposed rule on proxy advisors is excellent. Full version at the link below. An excerpt: ISS submits that there is no legal basis for any aspect of the proposal and that Congress never authorized the SEC to regulate either proxy advisers or proxy advice under the Exchange Act proxy…

ISS study links ESG performance to profitability

A link exists between a company’s ESG performance and its financial performance, according to a study published Thursday from ISS ESG, the responsible investment arm of Institutional Shareholder Services. Firms with high or favorable ISS ESG corporate ratings tend to be more profitable through an economic value-added lens, the study found. “While one can argue…

ISS Files Suit Against the SEC Re New Proxy Rules

The SEC is expected to reveal new proposed proxy rules next Tuesday, but ISS did not wait for their formal announcement. They have filed a lawsuit against the SEC. ISS claims that the upcoming rulemaking is invalid. An excerpt from the complaint: First, the Release exceeds the SEC’s statutory authority under Section 14(a) of the…

Do Corporate Governance Ratings change Investor Expectations? Evidence from Announcements by Institutional Shareholder Services | Review of Finance | Oxford Academic

Paul M Guest and Marco Nerino assess the impact of governance ratings. We continue to be very skeptical of any study focusing on the immediate impact of any particular information as being especially significant, but we believe this analysis is worth reviewing. This paper examines empirically the announcement effect of commercial corporate governance ratings on…

Findings of the ISS Global Survey 2019

The findings of the annual ISS survey on investor priorities: Board Gender Diversity: Majorities of both investors (61 percent) and non-investors (55 percent) agreed with the view that board gender diversity is an essential attribute of effective board governance regardless of the company or its market. Approximately 27 percent of investors tended to favor a market-by-market…

Board independence revealed as key issue for investors in 2020

Two interesting things about this. First is the increased interest in independent board chairs in Europe. And the second is that for the umpteenth time we again see that ISS follows the customers at least as often as the other way around. The independence of company chairs in Europe could figure heavily in the deliberations…

Apex and ISS jointly launch new ESG reporting services | Institutional Asset Manager

Apex, the world’s fifth largest fund administrator, and ISS, a provider of end-to-end governance and responsible investment solutions have joined forces to deliver ESG reporting capabilities to asset managers worldwide…The reports will allow Apex clients to measure the ESG performance of each of their portfolio companies through accessing ISS’ Governance QualityScores, company carbon footprints, and…

Proxy adviser ISS backs call for gun safety report at Sturm Ruger | Reuters

ISS and Glass-Lewis both recommended votes in favor of a proxy proposal calling for a report on gun safety. Proxy adviser Institutional Shareholder Services on Wednesday recommended investors vote to support a shareholder proposal calling for gunmaker Sturm Ruger & Co to report on gun safety, which could put new attention on so-called “smart gun”…