For today's blog, I have a couple of updates related to Glass Lewis and ISS.
Through a Glass (Lewis) DarklyWhile ISS has been somewhat forthright about its voting policies, the methodologies employed by Glass Lewis to evaluate management proposals have always been a black box. Recently, however, Glass Lewis launched a new "Issuer Engagement Portal" to provide insight into their decision-making process when making vote recommendations on proxy ballots.
The portal includes both "US Abridged Guidelines" and "Continental Europe Abridged Guidelines." A few highlights from the US Abridged Guidelines relating to stock options:
The portal also includes Issuer FAQs and a short summary of Glass Lewis' Equity-Based Compensation Analysis, which discusses their analysis relating to program size, cost, and features.
While this is no where near the level of transparency provided by ISS and still leaves many questions unanswered, it is at least a step in the right direction.
ISS: Do as We Say, Not as We DoThe disadvantage about disclosing your voting polices is that others can then apply them to you--or, in this case, to ISS's parent company, MSCI. Exequity has prepared an in-depth analysis of how MSCI's executive compensation programs would fare under ISS's policies (ISS does not issue a report on MSCI due to the inherent conflict of interest in reporting on their own parent). Exequity found a number of areas where MSCI engages in practices that ISS criticizes:
More at the NASPP ConferenceThis year's NASPP Conference will feature a session that will sort out fact from fiction on the proxy advisor policies and help you evaluate how critical it is for your company to comply with ISS and Glass Lewis policies. Look for more information when we announce the full program in a few weeks. The 20th Annual NASPP Conference will be held in New Orleans from Oct 8-11--register by May 31 for the early-bird rate.
NASPP "To Do" ListWe have so much going on here at the NASPP that it can be hard to keep track of it all, so we keep an ongoing "to do" list for you here in our blog.
What Ever Happened to That SEC Proposal?
The SEC has a number of pending rulemaking proposals that relate to stock compensation, some of which are nearly six years old. Here’s an update on where things stand.
Proxy Advisor Policy Changes for 2021
As we head into this year’s proxy season, it’s time to review the changes proxy advisors have made to their voting policies for stock plan proposals.
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