ISS-Corporate

Median support on say-on-pay at U.S. public companies has been on a downward trend for the past several years, but ISS-Corporate's analysis of the 2024 proxy season finds that this is showing signs of reversal. The median support on say-on-pay was up slightly in 2024 for both S&P 500 and Russell 3000 companies. The number of failed proposals has sharply dropped to 24, less than a third of the peak failures recorded in 2022. Learn more about our corporate governance solutions here: https://lnkd.in/ejNA5hhV Stay tuned for more highlights from ISS-Corporate's analysis of the recently concluded 2024 U.S. proxy season. #CorporateGovernance #ExecutivePay #SayonPay

Each year during proxy season, ISS-Corporate analyzes recently collected data from Russell 3000 company filings to uncover developments in the corporate governance landscape. In this season-ending LinkedIn series, we are highlighting key datapoints and trends from the season. Boards are expanding board committees beyond the traditional areas of committee oversight, adding new oversight responsibilities to cope with emerging risks and strategic priorities. Boards with committees tasked with information security oversight increased to 84.5% in 2024, and nearly three-quarters of Russell 3000 companies now have a committee that oversees sustainability matters. Learn more about ISS-Corporate's corporate governance solutions here: https://lnkd.in/ejNA5hhV #CorporateGovernance #Committees #BoardofDirectors

We were pleased to exhibit at Informa Connect’s CSRD & Sustainability Reporting 2024 event in London today, offering valuable insights for heads of sustainability on delivering CSRD reports. ISS-Corporate’s Cathrine Dehli, Head of Sustainability Advisory, Regulatory Reporting led the expert panel with Anna Gureva-Mihova, Andrew van Haght CA(SA) and Ashley Edwards on “Initial reporting experiences: Moving from NFRD to CSRD” discussing how organisations are investing in their capabilities to meet their reporting requirements. Stephen James and Andy Nicol also enjoyed attending the event and providing a demo of our specialised CSRD reporting software. Thank you to everyone who stopped by to speak with our team today. If we missed you there, stop by our booth tomorrow and book your demo here: https://lnkd.in/g37Ukcbe #CSRD #Sustainability #Reporting

Boards are bolstering their expertise on extra-financial risks and opportunities, ISS-Corporate finds in our analysis of the 2024 U.S. proxy season. ESG and human resources are the director skills that saw the largest increase between FY2021 and FY2023, followed by directors with expertise on information security which have grown by 35.5% during the same period. Amid increasing cybersecurity threats and new SEC disclosure requirement on cybersecurity, boards are strengthening their expertise and competencies regarding cyber risks. S&P 500 companies who had more than three directors with information security skills soared by 10 percentage points to 63%. Smaller cap companies are also strengthening their board competencies in cybersecurity, though the increase in information security skills was modest. Learn more about ISS-Corporate’s corporate governance solutions here: https://lnkd.in/ejNA5hhV #CorporateGovernance #Sustainability #Cyber

Total Shareholder Return is an increasingly popular metric for determining long-term incentive plans at Australian companies. While the measurement is viewed favorably by many institutional investors, some of its flaws are raising questions among shareholders. Relative TSR is increasingly preferred over absolute TSR among ASX100 companies, underscoring a preference for metrics that more closely align with shareholder returns relative to peers. However in a relatively small market like Australia, companies may struggle to find a relevant peer group to compare themselves with. The use of highly customized peer groups, when there is a misalignment between the LTI vesting levels and actual shareholder returns, may invite investor scrutiny. Click here to read the full report by ISS-Corporate Associate Director Pablo Hijano Ruiz and Head of APAC Advisory Herman Choi, CFA: https://lnkd.in/gFaJkerG Find out more about ISS-Corporate’s executive compensation solutions here: https://lnkd.in/ek3HXfcb #Australia #CorporateGovernance #ExecutiveCompensation  

Each year during proxy season, ISS-Corporate analyzes recently collected data from Russell 3000 company filings to uncover developments in the corporate governance landscape. In this season-ending LinkedIn series, we are highlighting key datapoints and trends from the season, looking today at racial and ethnic diversity on boards. Ethnic/racial diversity in boardrooms remained relatively flat compared with recent years, with ethnic minority directors holding 21.6% of directorships in 2024. Ethnic minority directors increased sharply in 2021 following the Black Lives Matter movement, but their growth has slowed down in subsequent years, increasing by a tepid 0.4 of a percentage point in 2024. Black/African Americans are the largest minority group, representing more than one third of all minority-held director positions. Boardroom diversity is showing signs of deceleration. A smaller proportion of new directors appointed in 2024 were women or ethnic minorities compared to 2023. New female directors were down one percentage point and new minority directors were down more than two percentage points. If this trend continues, gender and ethnic diversity could start to decrease in coming years. While 23% of new directors appointed in 2023 belonged to ethnic minority groups, only 21% of new directors in 2024 were minorities. Black/African American directors were the most prevalent minority group recruited followed by Indian/South Asian. Learn more about our corporate governance solutions here: https://lnkd.in/ejNA5hhV #CorporateGovernance #BoardDiversity #Diversity

Female representation on corporate boards has been steadily increasing, up almost seven percentage points since 2020, ISS-Corporate finds in our analysis of the 2024 U.S. proxy season. For the first time, female directors represent more than 30% of board seats among Russell 3000 companies. However, female directors holding board leadership roles or CEO positions continue to be rare, though some gains have been made. Female directors tend to have higher support levels than male directors, although the gap has been narrowing. As of the 2024 proxy season, female directors have had 0.6% more support, down from 1% higher support in 2020. Similarly, the gap in support between minority and white directors narrowed compared with the 2022 peak but has remained relatively steady at approximately 0.7% higher support for minority directors. Learn more about our corporate governance solutions here: https://lnkd.in/ejNA5hhV #CorporateGovernance #BoardDiversity #FemaleDirectors

With Materiality Assessments gaining traction as a key instrument in corporate sustainability management, companies are now increasingly expected to conduct evaluations centered on double materiality, value chain impacts, and stakeholder perspectives. In our latest post, ISS-Corporate Sustainability Advisor Jessica Lobo and Head of Americas Sustainability Advisory Kosmas Papadopoulos, CFA delve into the global trends of materiality assessments by analyzing corporate disclosure data to see if companies are evaluating key sustainability topics. Our experts also outline crucial steps for companies to follow when conducting their own materiality assessments. Read more: https://lnkd.in/gaYC6j_h #Materiality #CorporateSustainability 

Each year during proxy season, ISS-Corporate analyzes recently collected data from Russell 3000 company filings to uncover developments in the corporate governance landscape. In this season-ending LinkedIn series, we are highlighting key datapoints and trends from the season, beginning today with a look at support for board leadership positions. Board leadership positions such as independent board chairs and lead directors have seen decreased median support levels over the past several years, as have non-leadership roles. However, there was an improvement from 2023 to 2024 with an increase in support of 0.7% for independent board chairs/lead directors and 0.3% for other directors. The gap in support between independent board chairs/lead directors and other directors narrowed from 2023 to 2024, though this gap has otherwise been growing over the past five years. Learn more about our corporate governance solutions here: https://lnkd.in/ejNA5hhV #CorporateGovernance #BoardofDirectors #Russell3000 

Anti-Greenwashing Regulations Emerge in Canada and the EU In recent months, Canada and the European Union have forged ahead in passing new legislation aimed at reducing false or misleading environmental claims, a practice commonly referred to as greenwashing. A new blog post from ISS-Corporate unpacks Canada’s Bill C-59, passed in June 2024, and the proposed EU Green Claims Directive, expected to be finalized in late 2024. We explore the aims and key differences of the regulations and their implications for future regulatory developments in the anti-greenwashing landscape. Read the blog post by Wesley Leung, Associate, Sustainability Advisor, and Dennis Tung, Associate Vice President, Manager, Sustainability Advisory: https://lnkd.in/gesJxKZv #Greenwashing #Sustainability #SustainabilityRegulations