April 12, 2016
Equity Compensation Plans: ISS Issues 7 New FAQs
– Broc Romanek, CompensationStandards.com
Last month, ISS issued seven new FAQs to its “US Equity Compensation Plan FAQs” (for a new total of 55 FAQs) as follows:
– FAQ #2: Which equity compensation proposals are evaluated under the EPSC policy?
– FAQ #17: If a company assumes an acquired company’s equity awards in connection with a merger, will ISS exclude these awards in the three-year average burn rate calculation?
– FAQ #28: How does ISS evaluate an equity plan proposal seeking approval of one or more plan amendments?
– FAQ #29: How are plan proposals that are only seeking approval in order to qualify grants as “performance-based” for purposes of IRC Section 162(m) treated?
– FAQ #30: How are proposals that include 162(m) reapproval along with additional amendments evaluated?
– FAQ #31: How does ISS evaluate amendments by companies listed in France that are made in response to that market’s adoption of the Loi Macron (Macron Law)?
– FAQ #47: How does ISS determine the treatment of performance-based awards that may vest upon a change in control?