Attorney Michael Melbinger published this important update on the Executive Compensation Blog on November 19, reminding companies of the deadline for updating their compensation peer group and of the recent release of updates the benchmark proxy voting policies.
Melbinger also promises further insights on the new policies, which we will be sharing next week on Deferred Compensation News.
Consider Updating Your ISS Peer Group (Instructional Shareholder Services)
As it does every year, ISS (Instructional Shareholder Services) invites companies to update their compensation peer group beginning today, November 19, 2018, and ending at 8:00 p.m. (EST) on December 7, 2018. Also this morning, ISS released updates to its 2019 benchmark proxy voting policies for shareholder meetings on or after February 1, 2019. These are more significant to companies than peer group checks, but I need time to read the new policies, and readers may not want to think about them over Thanksgiving, so I’ll write about them next week.
This is a good idea because ISS does take into account the company’s self-selected compensation peer group as one of the inputs in developing the peer group that it uses to evaluate the company’s performance and CEO compensation. This could be particularly important for companies that have changed in size or business activities since last year’s proxy statement filing and, therefore, have developed a new peer group. Emerging growth companies do not need to disclose a compensation peer group, but smaller reporting companies do. Only the company can make the submission, not its outside advisors.
Securities offered through Valmark Securities, Inc. Member FINRA, SIPC, 130 Springside Drive, Akron, OH 44333-2431, Tel: 1-800-765-5201. Investment Advisory Services offered through Valmark Advisers, Inc., which is a SEC Registered Investment Advisor. Fulcrum Partners LLC is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.