Further to our September 12th report on the potential ISS implications of the September 28th changes to the GICS structure, ISS issued these FAQs on the GICS implementation - specifically, how the new GICS code will affect: (i) ISS's evaluation of equity compensation plans (under its Equity Plan Scorecard), executive compensation, and director compensation; (ii) the E&S QualityScore; and (iii) ISS policies - such as the director performance evaluation policy - that examine a company's TSR performance relative to its industry.
The FAQs also note that for US companies categorized in the new Media & Entertainment GICS 5020, answers to Question 130 in the Governance QualityScore - which evaluates each company's burn rate (i.e., average annual rate at which stock options and stock awards are granted) relative to its industry group, will be updated to reflect alignment with updated burn rate thresholds with the annual Governance QualityScore update later this year.
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See Exequity Ed Hauder's post, and additional information & resources on our Proxy Advisors page. This post first appeared in this week's Society Alert!
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