Even on Halloween, nothing is more frightening than an email update from ISS. Yesterday, ISS announced methodology changes to QualityScore, its corporate governance scoring solution for institutional investors. ISS is enhancing the QualityScore methodology “to provide users with deeper actionable insights, particularly in the areas of board composition and compensation.”
Beginning December 4, subscribers to ISS QualityScore will be able to compare 21 key factors across global markets, including the independence of the compensation and other board committees, vesting periods for option and restricted stock awards, and several other factors not related to compensation. Another across-the-board methodology change will be the provision of credit for covered companies meeting higher standards for women on the board.
According to ISS, this is only the first of several changes to come.
We will, of course, be talking about all of ISS’ new policies at our November 9 eLunch on 2018 proxy preparation.