New Questions and Methodology Updates to ISS’ Governance QualityScore Will Take Effect on November 29; Companies May Verify Data Through November 16
Institutional Shareholder Services (ISS) recently announced new questions and other methodology updates to its ISS Governance QualityScore corporate governance scoring tool that will take effect on November 29, 2018. These and additional updates are reflected in the Governance QualityScore technical document ISS published on November 5, 2018, available here. This Sidley Update summarizes the Governance QualityScore updates applicable to U.S. companies and reminds companies to verify their data against Governance QualityScore’s methodology until Friday, November 16, 2018 at 8:00 p.m. (ET).
ISS’ Governance QualityScore assigns each company in the S&P 500 and Russell 3000 (as well as companies in several foreign indices) a numeric, decile-based score indicating its corporate governance risk relative to other companies in the applicable index or region. Scores range from 1 to 10, with 1 indicating the highest level of governance quality and lowest level of governance risk. ISS analyzes a company’s corporate governance risk based on specified factors across four topical categories: Board Structure, Compensation, Shareholder Rights and Audit & Risk Oversight.
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