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Jan 12, 2015

ISS Publishes FAQs on Equity Plan Scorecard

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On December 22, 2014, Institutional Shareholder Services Inc. (“ISS”) released a set of Frequently Asked Questions (“FAQs”) that explain ISS’s new approach to evaluating management equity compensation plan proposals. ISS believes that its new approach—the Equity Plan Scorecard (“EPSC”)—allows for more nuanced consideration of equity incentive programs than did its prior method for evaluating equity plan proposals. The EPSC considers a range of positive and negative factors related to such proposals as opposed to ISS’s prior approach which used a series of pass/fail tests focused on the plan’s estimated cost to shareholders. Under the EPSC, ISS will continue to provide a negative recommendation for plans that contain certain features that are viewed as “egregious” (such as the right to reprice stock options without shareholder approval). The EPSC is applicable to all shareholder meetings on and after February 1, 2015.

View full memo, ISS Publishes FAQs on Equity Plan Scorecard

Authors and Contributors

John J. Cannon III

Partner

Compensation, Governance & ERISA

+1 212 848 8159

+1 212 848 8159

New York

Kenneth J. Laverriere

Partner

Compensation, Governance & ERISA

+1 212 848 8172

+1 212 848 8172

New York

Doreen Lilienfeld

Partner

Compensation, Governance & ERISA

+1 212 848 7171

+1 212 848 7171

New York

Linda Rappaport

Of Counsel

Compensation, Governance & ERISA

+1 212 848 7004

+1 212 848 7004

New York

George Spera, Jr.

Counsel

Compensation, Governance & ERISA

+1 212 848 7636

+1 212 848 7636

New York