October 10, 2017
Pay Ratio: How ISS Considers It
– Broc Romanek
For those coming to next week’s “Pay Ratio & Proxy Disclosure Conference,” you’ll hear directly from ISS’ David Kokell (he leads the U.S. compensation research team for ISS) – during the panel entitled “Navigating ISS & Glass Lewis” – about how ISS will consider the new pay ratios that companies disclose. But in the meantime, you can read this note from ISS about “Contextualizing CEO Pay Ratio Disclosure.” Here’s an excerpt:
Pay ratio disclosures loom, and there appears to be a gap in expectations between issuers and investors. According to the 2017-2018 ISS Global Policy Survey results, 44 percent of respondents from the corporate community believe that the pay ratio information is not meaningful; investor respondents, on the other hand, largely intend to analyze pay ratios, with 63 percent indicating that they would both compare ratios between companies and assess a company’s year-over-year changes.