Last week, ISS released for public comment a number of
proposed voting policy changes to be applied for shareholder
meetings taking place on or after February 1, 2021. The
proposed changes for U.S. companies relate to board racial/ethnic
diversity, director accountability for governance failures related
to environmental or social issues and shareholder litigation
rights, i.e., exclusive forum provisions. Comments may be
submitted on the proposals through October 26, 2020.
Board Diversity. ISS has not previously had a voting
policy regarding board racial or ethnic diversity, but notes that,
in light of recent social unrest triggered by racial and ethnic
injustices and inequality, "[m]any investors have expressed
interest in seeing ethnic or racial diversity on boards, citing
reasons of equality and good corporate governance."
According to a summer 2020 ISS survey, 61% of
