ISS-Corporate

ISS-Corporate's latest corporate sustainability blog post focuses on mental health in the workplace, a topic of increased relevance in the wake of the COVID-19 pandemic. The link between employees’ mental health and company performance is also reflected in the latest sustainability reporting standards. including the EU’s Corporate Sustainability Reporting Directive. We reviewed corporate disclosure data regarding efforts to promote mental health awareness and conduct mental health risk assessments within organizations. We also discuss common corporate practices that companies can implement to address mental health management in their organization. Read the full blog post by Jessica Lobo, Associate, Sustainability Advisory, and Kieran Woodsworth, Associate, Sustainability Advisory: https://lnkd.in/gG6sd3HC #MentalHealth #CSRD #Sustainability

Join us next Wednesday, January 22 for an insightful webinar covering U.S proxy advisor policy updates and season expectations for 2025. Tune in as ISS-Corporate Advisory team experts Valeriano Saucedo, Christian Darmanin, Hari Bhatt, and Rudy Kwack, CFA, FRM review the key voting policies and trending topics in governance, compensation, and sustainability that are expected to shape this year's annual meeting season. Register here: https://lnkd.in/gcshuJqy Please note this presentation is only open to corporate issuers. #CorporateGovernance #ExecutiveCompensation  

Recent news that the U.S. Securities and Exchange Commission has settled charges with EXPRESS, Inc. for failure to disclose special perquisites and benefits paid out to its CEO has thrust CEO perquisites into the spotlight. CEO perquisites, or “perks”, are generally a small component of executive compensation, but these benefits tend to draw scrutiny from shareholders and the media because of their often-unclear connection to performance criteria. A recent ISS-Corporate paper explores this topic in depth, looking at the usage and magnitude of perquisites in fiscal 2023 to identify any changes in trends from the year earlier and find out which types of perks are becoming more or less popular among companies and why. Read the full report by ISS-Corporate’s Senior Associate, Compensation & Governance Advisory Christian Darmanin, and Compensation & Governance Advisory Associates Samantha Greenwald and Kevin Kim: https://lnkd.in/gvN3hx5e Find out more about ISS-Corporate’s Executive Compensation Solutions here: https://lnkd.in/ek3HXfcb #CEOPay #CorporateGovernance #ExecutiveCompensation

How can companies prepare for assurance throughout the sustainability reporting process? With regulations like the EU’s CSRD and California’s SB 253 setting high assurance standards, staying ahead is essential for a smooth and cost-effective assurance process. Join us on January 16th as ISS-Corporate’s sustainability experts outline these assurance requirements and share best practices for companies as they work through each step of the reporting process.  Gain insights from Kosmas Papadopoulos, CFA, Executive Director and Head of Sustainability Advisory – Americas, Jacob McKeeman, Senior Associate, Sustainability Regulations, and Matthew Zirkelbach, Climate Lead for SustainaBase at ISS-Corporate. They will discuss assurance requirements and timelines, evolving standards for limited assurance, emerging auditor expectations, and key best practices for companies.  Register now: https://lnkd.in/gUEuwbMm   #SustainabiltiyReporting #CSRD #Assurance

We are pleased to have been recognized by the European Securities and Markets Authority (ESMA) as an external reviewer of green bonds under the EU Green Bond transitional scheme. As an external reviewer, we provide independent opinions on whether issuers of European Green Bonds are compliant with the Taxonomy requirements of the European Green Bonds Regulation, pending full registration in 2026. Previously, ISS-Corporate provided external reviews against the European Green Bond Standard (EuGB) on a best-efforts basis, with issuers such as ABN AMRO Bank and Verbund incorporating such options into their analyses. The EuGB, based on EU Taxonomy criteria, aims to provide transparency and a clear standard for green bonds. As an external reviewer, ISS-Corporate has delivered more than 850 SPOs and external reviews according to rigorous and well-respected standards. Learn more about ISS-Corporate’s sustainable finance solutions and external review process here: https://lnkd.in/gGzibmsX #GreenBonds #EuGB #SustainableFinance 

Diversity and inclusion saw a rapid rise in corporate life over the last several years as companies and investors sought to address longstanding racial and gender imbalances. More recently however, ESG issues including diversity have faced a strong political backlash, prompting businesses to rethink their priorities. While diversity metrics remain an important part of long-term and short-term executive compensation plans across U.S. corporates, the momentum clearly slowed between 2023 and 2024. Continuing political and legal efforts opposing the use of social metrics is likely to create uncertainly among companies as they choose their priorities for compensation going forward. ISS-Corporate examined DEI in compensation policies across S&P 1500 companies since 2020 to gain insights into the state of play today and look at how companies can plan their DEI incentives, metrics and disclosures going forward. Go here to read the full article by ISS-Corporate’s Sandra Herrera Lopez, Vice President, Compensation & Governance Advisory and Kevin Kee Kim, Associate, Compensation & Governance Advisory: https://lnkd.in/gT2uryWa Find out more about ISS-Corporate’s Executive Compensation Solutions here: https://lnkd.in/ejNA5hhV #DiversityAndInclusion #ExecutiveCompensation #ESG #USCorporates

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. In a recent paper, 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

The replay of ISS-Corporate’s recent webinar, Benchmarking Cyber Risk: How Does Your Firm Stack Up? is available for viewing. In Part 2 of our Decoding Cyber Risk webinar series, our thought leaders explore key topics such as public company considerations, benchmarking goals, benchmarking as a best practice and measurement vectors. In this clip, Sidhartha Dash, Chief Researcher at Chartis Research, speaks about the importance of multidimensionality in benchmarking, specifically looking at different levels of the organization and different sampling techniques. Download the full webinar here: https://lnkd.in/gsUwd9aG #CyberRisk #Cybersecurity #Webinar

While perquisites or “perks” are generally a small component of executive compensation, they tend to attract scrutiny from investors and the press as they can provide insights into a company’s overall pay practices. ISS-Corporate examined the use of perquisites for U.S.-listed companies in 2023 to identify any changes in trends from the year earlier and find out which types of perks are becoming more or less popular among companies and why. Our research found that companies with particularly high levels of CEO perks tended to receive lower Say-On-Pay support from shareholders than companies that use the practice less frequently. Although it is difficult to make a direct connection between the perquisites and the support levels, the results may serve as an indicator of broader pay practices that don’t sit well with investors. Read the full report by ISS-Corporate’s Senior Associate, Compensation & Governance Advisory Christian Darmanin, and Compensation & Governance Advisory Associates Samantha Greenwald and Kevin Kim: https://lnkd.in/gvN3hx5e Find out more about ISS-Corporate’s Executive Compensation Solutions here: https://lnkd.in/ek3HXfcb #CEOPay #CorporateGovernance #ExecutiveCompensation

Designing effective equity compensation plans requires a careful balance between company priorities and shareholder interests. Company compensation committees often seek to maintain flexibility over how equity is distributed to employees, enabling them to adjust plans according to the specific circumstances of the business or the recipients. Investors, meanwhile, tend to be wary of overly flexible plans because of their potential to dilute shareholdings. ISS-Corporate examined U.S. equity plans and trends over the last five years to show how investors responded to various features introduced by companies at their shareholder meetings. Go here to read the full report by ISS-Corporate’s Mary Joy Atienza, Vice President, Compensation & Governance Advsory, and Sandra Herrera, Vice President, Data Analytics Research: https://lnkd.in/g2c_--UX Find out more about ISS-Corporate’s Corporate Governance Solutions here: https://lnkd.in/ejNA5hhV #ExecutiveCompensation #CoporateGovernance #USCompanies