ISS-Corporate

An increasing number of companies are including individual performance metrics in their Annual Incentive Program, especially in the Real Estate and Financial Sectors. While this gives directors the opportunity to tailor compensation plans to the specific circumstances of their Named executive officers, it also means increased reliance on metrics that are subjective and not well understood by shareholders. ISS-Corporate examined Individual performance metrics within Annual Incentive Programs across 2,124 companies in the S&P 500 and Russell 3000 indexes to determine how often they are used and what their impact is on executive pay. We found wide variations between different industries and between larger and smaller companies. Notably, our research found that executives are more likely to meet their targets at companies that utilize IPMs and, on average, receive higher payouts. The results suggest that investors should carefully evaluate compensation programs that lack pre-set quantifiable metrics without ample disclosure. Go here to read the full article by ISS-Corporate’s Craig Benedict, Senior Associate, Compensation and Governance Advisory and Daniel King, Associate, Compensation and Governance Advisory: https://lnkd.in/g-PjPwan Find out more about our Executive Compensation Solutions here: https://lnkd.in/ek3HXfcb #ExecutivePay #CorporateGovernance #CEOpay

ISS-Corporate’s Jade McKellar, Sustainability Regulatory Reporting Specialist, will be participating in Novata’s November 26 webinar, EU Taxonomy Essentials: Your Path to SFDR & CSRD Success. Learn more and register below.?

We are excited to share that this Thursday, November 21, we will be joined by Leisa de Souza, a leading Green & Sustainable Finance Expert from Natixis Corporate & Investment Banking, for an insightful panel discussion on the evolving world of transition finance.? Leisa will be joined by a distinguished panel of sustainable finance experts, including Gemma Lawrence-Pardew, Head of Sustainability at Loan Market Association (LMA), Federico Pezzolato, Executive Director and Global Sustainable Finance Manager at ISS-Corporate, and Camille Roux, Associate Vice President of Sustainable Finance Research at ISS-Corporate. Don't miss this opportunity to gain valuable insights as they delve into market trends, key drivers, and the promising future of transition finance.? Register now: https://lnkd.in/gw6u5525? #SustainableFinance #TransitionFinance #SPO?

Japan’s system of determining executive compensation is becoming more closely aligned with U.S. and European standards, but there are still significant differences in terms of transparency and compensation committee independence. ISS-Corporate examines the evolving dynamics of CEO compensation in Japan, focusing on the Pharmaceutical and Automotive industries, due to their highly globalized nature. These industries face intense international competition, requiring top talent and global market strategies, making them ideal for examining CEO compensation trends. Japanese CEO pay has hit record highs, aligning more closely with European peers but still substantially lagging U.S. companies. Japan’s traditional focus on fixed compensation is gradually giving way to more equity-based awards, especially among companies with international exposure. Companies in Japan still have substantially fewer independent directors on their compensation committees than their counterparts in the U.S. and Europe. More than, 25% of Japanese compensation committees are chaired by insiders, a practice that is largely unheard of in the U.S. or in Europe. Go here to read the full article by ISS-Corporate’s Ingo Tietboehl, Senior ESG Advisor, APAC and Jun Frank, Global Head of Compensation & Governance Advisory, ISS-Corporate: https://lnkd.in/gB54Xnis Go here to find out more about ISS-Corporate’s executive compensation solutions: https://lnkd.in/ek3HXfcb #ExecutiveCompensation #Japan #CorporateGovernance

Don’t miss the final session in ISS-Corporate’s fall cyber webinar series this Wednesday. Speakers Douglas Clare, Ramy S. Ibrahim, CFA, and Hogan Lovells Partner Paul Otto will cover a comprehensive review of the 2023 SEC Disclosure Rules, emerging 2024 disclosure trends, an analysis of Russell 3000 cyber incidents in 2024, and more insights for public companies on cyber risk disclosure trends. Register to attend here: https://lnkd.in/gZhKHjGh #CyberRisk #CyberDisclosure #Cyber

Cyber Risk Disclosure Trends: How are the new SEC rules changing corporate behavior? Join ISS-Corporate Wednesday, November 20 for the third and final installment of our fall Cyber Webinar Series. In this session speakers Douglas Clare, Ramy S. Ibrahim, CFA, and Paul Otto will cover: ?? Cyber risk types and their frequency ?? Key insights for public companies ?? A comprehensive review of the 2023 SEC Disclosure Rules ?? Emerging 2024 disclosure trends (highlighted by ISS ESG's Governance QualityScore cyber disclosure factors) ?? Strategic disclosure insights and best practices ?? An analysis of 2024 R3K incidents ?? Live Q&A Register here: https://lnkd.in/gZhKHjGh #CyberRisk #CyberDisclosure #Webinar

What challenges and opportunities does transition finance present for financial institutions, regulators, companies, and investors? On November 21, ISS-Corporate will host a live panel discussion to explore this pressing question, covering market trends and developments, expectations from parties involved, and a look-ahead at the future of transition finance.? Members of ISS-Corporate’s sustainable finance team Federico Pezzolato and Camille Roux will be joined by Gemma Lawrence-Pardew, Head of Sustainability at the Loan Market Association (LMA), to discuss key topics including: ?? Sectors benefitting from transition finance and which regional markets are most prepared ?? The role of regulators and market associations ?? The need to standardize financing frameworks ?? Characteristics of a strong transition-labelled deal ?? Audience Q&A Register today:? https://lnkd.in/gw6u5525 #SustainableFinance #TransitionFinance #SPO?

Corporate impacts and dependencies related to nature have garnered considerable attention in recent years, with growing interest also reflected in shareholder proposal campaigns focused on nature-related issues. With the 16th Conference of the Parties to the Convention on Biological Diversity (COP 16) recently concluded, ISS-Corporate reviewed nature-themed shareholder proposals during the past decade to identify key trends and developments related to nature in corporate shareholder engagements. Read the full blog post by Kosmas Papadopoulos, CFA, Head of Sustainability Advisory, Americas: https://lnkd.in/gcwXpeF8 #Sustainability #ShareholderProposals #COP16?

In anticipation of the EU Green Bond Standard regulation entering into effect on December 21, ISS-Corporate is launching a market survey with the aim of gathering insights on the appetite and readiness for issuing EuGB designated bonds. Prospective issuers as well as underwriters are invited to participate. If your institution has issued bonds in the past or you represent an underwriter working with bond issuers, we would love to hear from you by or before the deadline of November 30. ISS-Corporate will use the answers in anonymized form and share the results of the survey at the beginning of 2025. Issuers are invited to take the survey here: https://lnkd.in/gMqJFR5M Underwriters can access the survey here: https://lnkd.in/gwDViCkW Subscribe to our Sustainable Finance Market Highlights newsletter here: https://lnkd.in/gKdf37DX #SustainableFinance #GreenBonds #EUGBS?

Equity awards – the primary component of U.S. CEO compensation – help align management and shareholder interests, but also bring potential risks. Companies are increasingly adopting a variety of policies to mitigate the risks associated with equity compensation. ISS-Corporate examined the prevalence of risk mitigation polices across the S&P 500 and Russell 3000 indexes. While policies such as clawbacks, post-vesting and post-exercise holding periods and bans on hedging and pledging are broadly on the rise, there are large differences between industries. Shareholder pressure, the desire to conform with market norms, updated SEC requirements, and enhanced proxy advisory firm policies have all contributed to a greater emphasis on ensuring that equity awards are accompanied by robust guardrails. Such policies are now so widely adopted that companies without them risk being seen as outliers by investors. Go here to read the full article by ISS Corporate’s Christian Darmanin, Senior Associate, Compensation & Governance Advisory, Henry Mbom, Vice President, Compensation & Governance Advisory, and Samantha Greenwald, Associate, Compensation & Governance Advisory. https://lnkd.in/gMdCSuvH Find out more about our executive compensation solutions here: https://lnkd.in/ek3HXfcb #ExecutiveCompensation #Regulation #USCompanies #CorporateGovernance?