The Institutional Shareholder Services
(ISS) has stated that recent high-profile corporate
failures and accounting scandals have raised
investors' concerns about the efficacy of financial
statements and the need for improved audit quality and stronger
boardroom oversight.
Against this backdrop, ISS has published its 2019 benchmark
policy consultation, seeking views on certain of its
proposed voting policies for 2019. In relation to its UK/Ireland
and European policies, the key changes under consideration are as
follows:
"Where information is available,
ISS research reports will note any lead audit partners (and/or
partnership firms) who have been linked with significant auditing
controversies and, where they are engaged in the audit for other
public companies, this will be raised for investor attention
– even if no audit concerns have been identified at the
subject company. A negative recommendation on auditor ratification
may be applied in the most severe
