• ISS Issues White Paper on New Approach in Evaluating Pay for Performance Alignment
  • December 29, 2011 | Authors: Arsineh Ananian; Amy Goodman; Ronald O. Mueller
  • Law Firms: Gibson, Dunn & Crutcher LLP - Los Angeles Office ; Gibson, Dunn & Crutcher LLP - Washington Office ; Gibson, Dunn & Crutcher LLP - Los Angeles Office
  • On December 20, 2011, Institutional Shareholder Services ("ISS"), a leading proxy advisory firm, published a white paper titled "Evaluating Pay for Performance Alignment: ISS' Quantitative and Qualitative Approach." The white paper provides greater guidance on ISS' new approach to establishing peer groups when conducting the pay-for-performance test described in its U.S. Corporate Governance Policy 2012 Updates and provides a detailed summary of and rationale for the new quantitative and qualitative methodology ISS will implement, beginning February 1, 2012, when assessing executive compensation. The white paper is available at http://www.issgovernance.com/policy/2012/policy&under;information. Additional information on ISS' U.S. Corporate Governance Policy 2012 Updates is set forth in our client alert of November 23, 2011 "ISS Releases Policy Updates for 2012 Proxy Season." This client alert summarizes the new quantitative methodology and ongoing qualitative factors ISS will use to evaluate pay-for-performance alignment beginning February 1, 2012.