As
we've previously discussed, ISS released
its 2014 Corporate Governance Policy Updates in November
of last year. ISS also announced that it was
continuing consultations on a number of issues that could result in
policy changes for 2015, with director tenure being identified as
one such issue in the U.S. and Canada. Currently, ISS'
Benchmark U.S. and Canada Voting Policies do not
consider director tenure as a factor in setting vote
recommendations in director elections.
According to a survey conducted by ISS, close to three-quarters
of investors consider long director tenure to be problematic. While
long tenure directors have experience and company-specific
knowledge that may positively affect corporate decision-making,
there is concern that long tenure may undermine the independence of
directors.
