ISS Releases 2016 Draft Policy Changes For Comment

On October 26, Institutional Shareholder Services (“ISS”) released drafts of 2016 policy changes for public comment, which will apply to annual meetings held on or after February 1, 2016. The comment period will extend through 6 p.m. Eastern on November 9. The draft U.S. policy changes do not address updates to ISS’ key compensation policies pertaining to pay-for-performance evaluations, including peer group formation, problematic pay practices or equity plan proposals, although an update to Canadian policies to adopt an equity plan scorecard is proposed. U.S. policy changes in these areas could be included in the final policy updates, which are expected to be released on November 18. In addition, other changes pertaining to the application of current policies (e.g., burn rate and pay-for-performance concern thresholds) could be included in updated FAQs typically issued in mid-December.