• ISS Opens "Governance QuickScore" Web Portal with February 15 Deadline for Issuer Data Review
  • February 5, 2013 | Authors: Charles A. Gilman; Jonathan I. Mark; John J. Schuster; Glenn J. Waldrip
  • Law Firm: Cahill Gordon & Reindel LLP - New York Office
  • Institutional Shareholder Services Inc. (“ISS”) recently announced that it would be replacing its system of rating issuers on governance-related matters, the Governance Risk Indicators database (“GRId”) system, with its “Governance QuickScore” system at the end of February 2013. In large part, the governance factors that ISS will be relying on to calculate issuers’ Governance QuickScore ratings are substantially identical to the factors utilized in calculating issuers’ ratings under GRId. ISS stated that it revised its weighting methodology for the Governance QuickScore system to emphasize factors that correlate based on historical data with specific financial performance measures selected by ISS, with a secondary policy-based overlay to align the qualitative aspect of governance with ISS policy. Once the weightings are applied, individual issuers’ Governance QuickScore ratings will be based on the issuers’ decile rankings and expressed on a scale of 1 to 10.