This Pearl Meyer Client Alert provides detail and analysis on the new Equity Plan Scorecard proposed by proxy advisory firm Institutional Shareholder Services, Inc. (“ISS”).
ISS’ planned policy change for its evaluation of equity compensation is expected to be finalized in November and Pearl Meyer outlines its concerns and explains potential consequences, including binding outcomes based on investors’ voting.
Companies that plan to take equity plans to shareholder vote are encouraged to act quickly and take into account these new proposed factors if they are relying on ISS recommendation.