My blog last Wednesday discussed the window of opportunity for companies to provide input to ISS on the selection of their peer group for the upcoming proxy season.

Then on Thursday (November 21), ISS released its 2014 U.S. Policy Updates. The good news (or bad news, depending on your perspective) is that 2014 Updates made only one update to the executive compensation section. In the pay for performance quantitative screen, ISS currently calculates the Relative Degree of Alignment (RDA) by taking the difference between the company’s total shareholder return rank and the CEO’s total pay rank within a peer group, as measured over one-year and three-year periods (weighted 40% / 60%). Under the revised methodology, ISS will calculate the difference between the company’s total shareholder return rank and the CEO’s total pay rank within a peer group, as measured over a three-year period – somewhat simplifying and smoothing the process.

The 2014 Updates will be effective for shareholder meetings on or after February 1, 2014.