ISS Releases FAQ Guidance on U.S. Policy Interpretation and Research


Proxy advisory firm Institutional Shareholder Services, Inc. (ISS) recently published a set of Frequently Asked Questions (FAQs) on its U.S. policy interpretation and research. The FAQs cover four areas: (1) research conducted by ISS, including how an issuer can obtain a copy of ISS proxy analysis and address negative recommendations; (2) ISS engagement with external parties such as shareholders and issuers; (3) an issuer's ability to review ISS proxy analysis prior to publication; and (4) general policy questions. Given the continuing influence of ISS in today's proxy process, public companies should carefully review the ISS FAQs and contact ISS with any questions.
Among other topics, the FAQs note that issuers generally can receive a free copy of ISS' U.S. proxy analyses 13-25 calendar days before the shareholder meeting. Only S&P 500 companies may elect to receive a draft proxy report from ISS before distribution to ISS clients. All issuers should contact ISS in advance to obtain a free login and password, thus enabling the issuers to access current (and past) proxy analyses as soon as released and to check Governance Risk Indicators (GRId) data. The FAQs also highlight steps that issuers should take if they believe that an ISS report contains a factual error. If an issuer wishes to reverse a negative recommendation of ISS, the issuer must publicly disclose additional information addressing the issue and send a link of the relevant filings to ISS via email. If a change is warranted, ISS will send a "Proxy Alert" to its clients correcting or updating its recommendations, provided the shareholder meeting is at least five business days away.
If you have any questions about ISS and its proxy voting recommendations, please contact Alden Smith, the principal drafter of this client alert, or you may contact the Womble Carlyle attorney with whom you usually work or one of our Corporate and Securities attorneys at the following link:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Womble Carlyle Sandridge & Rice, LLP | Attorney Advertising

Written by:


Womble Carlyle Sandridge & Rice, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.