Institutional Shareholder Services has proposed substantial changes to its voting policies for the 2015 proxy season that will give institutional investors greater flexibility in the way they evaluate companies’ equity plan proposals.
It also addresses a big complaint from companies that ISS takes a “cookie-cutter” approach to evaluating executive incentive-pay plans. The new policies provide for more nuances and consider more factors when assessing the merits of equity grants. Some companies, however, could find the new scrutiny casts their plans in an unflattering light.
