ISS Publishes FAQ Regarding Pay-For-Performance

As discussed in a post of December 21, 2011, Institutional Shareholder Services (ISS) released a white paper last year entitled "Evaluating Pay-for-Performance Alignment: ISS' Quantitative and Qualitative Approach". The Paper introduced ISS' new approach to evaluating pay-for-performance and represents the most current and thorough description of the approach ISS utilizes to evaluate pay-for-performance. A subsequent post of January 10, 2012 provided a summary of the paper.

More recently, ISS has added a Frequently Asked Questions (FAQ) section to their website on the issue. Specifically, the FAQ is intended to provide high-level guidance regarding the way in which ISS will generally analyze certain issues in the context of preparing proxy analysis and vote recommendations for U.S. companies. ISS does, however, indicate that the responses should not be construed as a guarantee as to how it will apply its benchmark policy in any particular situation.