October 7, 2016
ISS Survey: Pay-for-Performance Metrics
– John Jenkins
In this blog, Davis Polk’s Ning Chiu notes that responses to ISS’s 2017 policy survey show strong investor support for the use of additional pay-for-performance metrics:
79% of investors supported ISS using additional pay for performance metrics beyond total shareholder return. 18% want revenue metrics (absolute revenue or revenue growth); 26% favored the use of earnings metrics (such as EPS or EBITDA); 35% supported return metrics (ROA or ROE); 47% supported return on investment metrics (such as ROIC); 25% supported cash flow metrics; and 22% favored economic profit metrics.