Proxy Advisory Firms Release 2017 Policy Updates

Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co., LLC (“Glass Lewis”) recently published their 2017 policy updates, which will apply to issuers with annual meetings on or after January 1 for Glass Lewis and February 1 for ISS.

ISS’ U.S. and Canadian compensation-related policy changes were few but far reaching, including highly anticipated changes to its pay-for-performance evaluation methodology. Glass Lewis reported no compensation-related U.S. policy changes, but did clarify that it expects clear reconciliations to GAAP financials when non-GAAP metrics are used. The full list of policy updates, including non-compensation-related governance updates, can be found on each proxy advisors’ website.