ISS Issues 2012 Corporate Governance Policy Updates Relating to Compensation

Institutional Shareholder Services Inc. (?Ç£ISS?Ç¥) recently released its 2012 corporate governance policy update which includes changes to the way it evaluates executive pay-for-performance to ensure alignment between compensation and shareholder goals. The new ISS methodology includes measuring both peer group alignment and absolute alignment. Key factors that the ISS will evaluate include a company?ÇÖs one- and three-year total shareholder return (?Ç£TSR?Ç¥) relative to its industry group, and whether the CEO?ÇÖs total compensation is aligned with the company?ÇÖs TSR in both the short and long-term. ISS?ÇÖs 2012 policy can be found here.