ISS 2016-17 SURVEY RESULTS

As Veritas reported in their compensation newsletter 115 institutional investors, 17 advisers to companies and 270 corporate issuers participated in this survey.

A brief synopsis of the results:

  • Adding other metrics to TSR to measure pay-for-performance was strongly put forth.  ISS is moving to adopt other metrics for evaluation.
  • Director tenure – an issue with a need to also look at board refreshment.
  • Strong support for annual say-on-pay frequency.
  • Majority of institutional investors opposed to new public companies with dual class stock or multiple-class structures.
  • Unhappy with directors that take advantage of Maryland law.

Overboarding for non-CEO executive chairs limited to three boards.

Clearly, the focus on the board is being highlighted.  This may become a problem in finding qualified directors working to serve under increasing scrutiny.

    From Your Friends at Laurel Hill

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