{"id":53026,"date":"2024-12-18T12:34:53","date_gmt":"2024-12-18T17:34:53","guid":{"rendered":"https:\/\/allianceadvisors.com\/?p=53026"},"modified":"2025-03-11T05:23:14","modified_gmt":"2025-03-11T09:23:14","slug":"iss-releases-2025-u-s-and-canadian-voting-policy-changes","status":"publish","type":"post","link":"https:\/\/allianceadvisors.com\/fr\/iss-releases-2025-u-s-and-canadian-voting-policy-changes\/","title":{"rendered":"ISS Releases 2025 U.S. and Canadian Voting Policy Changes"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row content_placement=&nbsp;&raquo;bottom&nbsp;&raquo; column_spacing=&nbsp;&raquo;0px&nbsp;&raquo; css=&nbsp;&raquo;.vc_custom_1733770999606{background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}&nbsp;&raquo; min_height=&nbsp;&raquo;450px&nbsp;&raquo;][vc_column css=&nbsp;&raquo;.vc_custom_1734542955491{background-image: url(https:\/\/allianceadvisors.com\/wp-content\/uploads\/2024\/12\/AdobeStock_900894768.jpg?id=53055) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}&nbsp;&raquo; wpex_bg_position=&nbsp;&raquo;center center&nbsp;&raquo;]<div class=\"vcex-spacing wpex-w-100 wpex-clear\" style=\"height:300px;\"><\/div>[vc_column_text align=&nbsp;&raquo;left&nbsp;&raquo; css=&nbsp;&raquo;.vc_custom_1734542916551{padding-top: 30px !important;padding-right: 30px !important;padding-bottom: 30px !important;padding-left: 30px !important;background-color: rgba(255,255,255,0.84) !important;*background-color: rgb(255,255,255) !important;border-color: #f5b335 !important;}&nbsp;&raquo; width=&nbsp;&raquo;600px&nbsp;&raquo; color=&nbsp;&raquo;#393939&Prime; font_size=&nbsp;&raquo;d:6xl|pp:30px&nbsp;&raquo; line_height=&nbsp;&raquo;tight&nbsp;&raquo; font_weight=&nbsp;&raquo;600&Prime;]\n<div class=\"page\" title=\"Page 1\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p>ISS Releases 2025 U.S. and Canadian Voting Policy Changes<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n[\/vc_column_text][vc_column_text align=&nbsp;&raquo;left&nbsp;&raquo; css=&nbsp;&raquo;.vc_custom_1734542934249{padding-top: 20px !important;padding-right: 30px !important;padding-bottom: 20px !important;padding-left: 30px !important;background-color: #f5b335 !important;border-color: #f5b335 !important;}&nbsp;&raquo; width=&nbsp;&raquo;600px&nbsp;&raquo; color=&nbsp;&raquo;#393939&Prime; font_weight=&nbsp;&raquo;600&Prime; line_height=&nbsp;&raquo;tight&nbsp;&raquo; font_size=&nbsp;&raquo;d:lg|pp:16px&nbsp;&raquo;]\n<div class=\"page\" title=\"Page 1\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p>By Shirley Westcott<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n[\/vc_column_text]<div class=\"vcex-spacing wpex-w-100 wpex-clear\" style=\"height:50px;\"><\/div>[\/vc_column][\/vc_row][vc_row][vc_column]<div class=\"vcex-spacing wpex-w-100 wpex-clear\" style=\"height:30px;\"><\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&nbsp;&raquo;&nbsp;&raquo;]<a class=\"glossaryLink cmtt_Institutional Shareholder Engagement cmtt_Institutional Shareholder\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Institutional Shareholder&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; Institutional Shareholder is a large investor that owns significant amounts of stock in...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/contact\/&amp;quot;&gt;Contactez-nous&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/from-risk-to-resilience-the-role-of-climate-disclosure-and-scenario-analyses-for-companies\/&amp;quot;&gt;From Risk to Resilience: The Role of Climate Disclosure and Scenario Analyses for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/institutional-shareholder\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/institutional-shareholder\/\" href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/institutional-shareholder\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Institutional Shareholder<\/a> Services (ISS) has published its 2025 U.S. and Canadian benchmark policy updates which take effect for annual meetings on or after Feb. 1, 2025&sup1;.\n<p>This year&rsquo;s U.S. revisions are largely confined to poison pills, special purpose <a class=\"glossaryLink cmtt_Mergers &amp; Acquisitions\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Acquisition&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; Acquisition is the purchase of one company, often referred to as the target company, by another...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/sollicitation-et-engagement-des-actionnaires\/&amp;quot;&gt;Conseil en Assembl&eacute;e G&eacute;n&eacute;rale &amp;#038; Engagement Actionnarial&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/alliance-advisors-acquires-lha\/&amp;quot;&gt;成人视频, LLC acquires LHA Investor Relations&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/acquisition\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\"  data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/acquisition\/\"  href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/acquisition\/\"  data-mobile-support=\"0\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex='0' role='link'>acquisition<\/a> corporation (SPAC) extension proposals, natural capital\/biodiversity shareholder proposals, and an adjustment to ISS&rsquo;s qualitative review of performance-vesting equity awards.&nbsp; ISS is also seeking additional feedback on the use of performance-vesting versus time-vesting awards in <a href=\"https:\/\/allianceadvisors.com\/fr\/conseil-en-remuneration-en-gouvernance-et-en-developpement-durable\/\">executive compensation<\/a> for a potential policy update in 2026.<\/p>\n<p>In Canada, ISS has clarified its policies on the independence of former CEOs and on charter and bylaw amendments giving the board discretion to hold virtual-only <a href=\"https:\/\/allianceadvisors.com\/fr\/sollicitation-et-engagement-des-actionnaires\/\">shareholders&rsquo; meetings<\/a>.<\/p>\n<p>These changes are summarized below.<\/p>\n<h3>U.S. Policy Updates<\/h3>\n<p><strong>Poison Pills<\/strong><\/p>\n<p>ISS has provided more detail on the case-by-case factors it considers in deciding whether to recommend against directors (other than new nominees) if the board adopts a short-term (one year or less) <a class=\"glossaryLink cmtt_Activist Shareholder Campaign\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Poison Pill&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; A defensive mechanism adopted by companies to deter hostile takeovers or activist investors by...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/from-risk-to-resilience-the-role-of-climate-disclosure-and-scenario-analyses-for-companies\/&amp;quot;&gt;From Risk to Resilience: The Role of Climate Disclosure and Scenario Analyses for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/2023-u-s-proxy-season-review\/&amp;quot;&gt;2023 U.S. Proxy Season Review&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/poison-pill\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\"  data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/poison-pill\/\"  href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/poison-pill\/\"  data-mobile-support=\"0\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex='0' role='link'>poison pill<\/a> without shareholder approval.&nbsp; These include:<\/p>\n<ul>\n<li>The trigger threshold and other terms of the pill,<\/li>\n<li>The disclosed rationale for the adoption,<\/li>\n<li>The context in which the pill was adopted (e.g., the company&rsquo;s size and stage of development, sudden changes in market capitalization, and extraordinary industry-wide or macroeconomic events),<\/li>\n<li>A commitment to put any renewal to a shareholder vote,<\/li>\n<li>The company&rsquo;s overall track record on <a class=\"glossaryLink cmtt_Corporate Governance Advisory\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Corporate Governance&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; The system of rules, practices, processes, and structures by which a company is directed and...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/from-risk-to-resilience-the-role-of-climate-disclosure-and-scenario-analyses-for-companies\/&amp;quot;&gt;From Risk to Resilience: The Role of Climate Disclosure and Scenario Analyses for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/compensation-advisory-case-study\/&amp;quot;&gt;Case Study: Previously, Failed Say on Pay Proposal Compensation Advisory, Shareholder Meeting Advisory&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/corporate-governance\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/corporate-governance\/\" href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/corporate-governance\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">corporate governance<\/a> and responsiveness to shareholders, and<\/li>\n<li>Other factors as relevant.<\/li>\n<\/ul>\n<p>ISS notes that most poison pills in the U.S. are short term, with a duration of one year or less, and are rarely submitted for shareholder approval.&nbsp; The update clarifies two factors that it had previously included in the &ldquo;other factors as relevant&rdquo; category:&nbsp; the context in which the pill was adopted and the company&rsquo;s overall track record on corporate governance and responsiveness to shareholders.&nbsp; ISS is maintaining its existing policy on the adoption of a long-term pill without shareholder approval or when a pill is put to a shareholder vote.<\/p>\n<p style=\"font-weight: 400;\"><strong>Shareholder Proposals on Natural Capital\/Community Impact Assessments<\/strong><\/p>\n<p style=\"font-weight: 400;\">In recent years, there has been an increase in the number and variety of shareholder proposals focused on nature-related and community impact risks, such as biodiversity loss, deforestation and water pollution.<\/p>\n<p style=\"font-weight: 400;\">ISS takes a case-by-case approach to such proposals, with one factor being the disclosure of applicable company policies, metrics, risk assessment reports, and risk management procedures.&nbsp;&nbsp; ISS has revised this factor to take into account the alignment of such disclosures with any relevant, broadly accepted reporting frameworks, such as the Taskforce on Nature-related Financial Disclosures (TNFD) and the Kunming-Montreal Global Biodiversity Framework (GGF).&nbsp; This reflects the evolving focus of the shareholder proposals.<\/p>\n<p style=\"font-weight: 400;\"><strong>Performance Versus Time-Based Equity Awards<\/strong><\/p>\n<p style=\"font-weight: 400;\">Under its current pay-for-performance (PFP) assessment of <a class=\"glossaryLink cmtt_Executive Compensation cmtt_&ldquo;Say on Pay&rdquo; provisions\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Executive Compensation&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; Executive compensation is the financial compensation and benefits package provided to top-level...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/from-risk-to-resilience-the-role-of-climate-disclosure-and-scenario-analyses-for-companies\/&amp;quot;&gt;From Risk to Resilience: The Role of Climate Disclosure and Scenario Analyses for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/the-importance-of-pre-agm-shareholder-engagement-cornerstone-practices-for-greater-china-2023\/&amp;quot;&gt;The Importance of Pre-AGM Shareholder Engagement Cornerstone Practices for Greater China 2023&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/executive-compensation\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/executive-compensation\/\" href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/executive-compensation\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">executive compensation<\/a>, ISS considers a predominance of time-vesting (as opposed to performance-vesting) equity awards to be a significant concern at companies that exhibit a quantitative PFP misalignment.<\/p>\n<p style=\"font-weight: 400;\">According to ISS, a growing number of investors have expressed concerns with performance equity programs that are poorly designed or poorly disclosed, are highly complex, or use non-rigorous performance measures.&nbsp; Some investors consider well-designed time-vesting awards to be preferable to performance-vesting awards.<\/p>\n<p style=\"font-weight: 400;\">In view of evolving investor views on this issue, ISS is adjusting its qualitative PFP analysis so that concerns with the design or disclosure of performance-vesting awards will carry greater weight.&nbsp; Significant concerns may drive an adverse say-on-pay (SOP) recommendation at companies with a PFP misalignment.&nbsp; ISS provided additional details on this change in a U.S. Executive Compensation Policies FAQ in mid-December&sup2;.<\/p>\n<p><span style=\"font-weight: 400;\">ISS may adopt more significant policy changes in 2026 regarding the treatment of time-based equity awards and continues to welcome additional feedback on this topic.&nbsp; Feedback can be submitted through the ISS Help<\/span> Center&sup3;.<\/p>\n<h3>SPAC Extensions<\/h3>\n<p>The main purpose of SPACs is to identify and acquire a viable target within a specified timeframe (up to the &ldquo;termination date&rdquo;).&nbsp; Failure to achieve this objective calls into question management&rsquo;s ability to execute its primary objective.<\/p>\n<p>This update codifies ISS&rsquo;s current approach to SPAC extension recommendations.&nbsp; ISS will generally support extension requests of up to one year from the original termination date, inclusive of any built-in extension options that were included in the original governing documents.&nbsp; ISS will support multiple extension requests if they do not collectively exceed one year.<\/p>\n<p>ISS notes that since the SPAC boom during the COVID-19 pandemic, there has been a proliferation of so-called &ldquo;zombie SPACs&rdquo;&mdash;namely, those that have experienced heavy shareholder redemptions that leave minimal funds in the trust account.&nbsp; These SPACs have failed to consummate a business combination and have sought extensions to their termination dates, sometimes on multiple occasions and for multiple years.<\/p>\n<h3>Canadian Policy Updates<\/h3>\n<p><strong>Articles or Bylaws Amendments for Virtual-Only Meetings<\/strong><\/p>\n<p>Currently, ISS supports management proposals to adopt or amend the articles\/bylaws unless the changes negatively impact shareholders or diminish board oversight.&nbsp; These include certain advance notice, <a class=\"glossaryLink cmtt_AGM (Annual General Meeting) and EGM (Extraordinary General Meeting)\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Quorum&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; The minimum number of shareholders required to be present, either in person or by proxy, to...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/compensation-advisory-case-study\/&amp;quot;&gt;Case Study: Previously, Failed Say on Pay Proposal Compensation Advisory, Shareholder Meeting Advisory&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/apac-power-generation-company\/&amp;quot;&gt;Case Study: EGM &amp;#8211; Shareholder Engagement&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/quorum\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\"  data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/quorum\/\"  href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/quorum\/\"  data-mobile-support=\"0\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex='0' role='link'>quorum<\/a>, alternate director and exclusive forum provisions; board authority to unilaterally alter the capital structure; and the ability of the board chair to break a deadlock in a director vote.<\/p>\n<p>In the past, ISS has also opposed amendments that give the board discretion to hold <a href=\"https:\/\/allianceadvisors.com\/fr\/sollicitation-et-engagement-des-actionnaires\/\">shareholders&rsquo; meetings<\/a> in a virtual-only format without a compelling rationale.&nbsp; This is now codified in the policy.<\/p>\n<p>Comments: Glass Lewis has made a similar policy change for 2025 whereby it expects companies to disclose their reason for choosing to hold a virtual-only <a href=\"https:\/\/allianceadvisors.com\/fr\/sollicitation-et-engagement-des-actionnaires\/\">shareholders&rsquo; meeting<\/a>.&nbsp; If a board fails to address legitimate, publicly expressed shareholder concerns regarding the meeting format, Glass Lewis may recommend against the chair of the governance committee or other accountable directors.<\/p>\n<p><strong>&nbsp;Independence of Former\/Interim CEO<\/strong><\/p>\n<p>ISS has clarified its policy on <a class=\"glossaryLink cmtt_Corporate Governance Advisory\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Director Independence&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; Director Independence is the principle that members of a company&amp;#039;s board of directors should be...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/from-risk-to-resilience-the-role-of-climate-disclosure-and-scenario-analyses-for-companies\/&amp;quot;&gt;From Risk to Resilience: The Role of Climate Disclosure and Scenario Analyses for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/the-importance-of-pre-agm-shareholder-engagement-cornerstone-practices-for-greater-china-2023\/&amp;quot;&gt;The Importance of Pre-AGM Shareholder Engagement Cornerstone Practices for Greater China 2023&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/director-independence\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/director-independence\/\" href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/director-independence\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">director independence<\/a> in the case of a director who served as CEO or interim CEO of the company or its affiliates in the past five years. &nbsp;&nbsp;After a five-year cooling off period, ISS may classify the director as non-independent based on certain circumstances.&nbsp; These include management\/board turnover, current or recent involvement with the company, whether the former CEO was a company founder or executive chair, the length of service with the company, and any related-party transactions or consulting arrangements.<\/p>\n<p><strong>Former CEO on Audit Committee<\/strong><\/p>\n<p>Currently, ISS recommends against a director who sits on the audit or <a class=\"glossaryLink cmtt_&ldquo;Say on Pay&rdquo; provisions\" aria-describedby=\"tt\" data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Compensation Committee&lt;\/div&gt;&lt;div class=glossaryItemBody&gt; A committee of a company&amp;#039;s board of directors responsible for overseeing executive compensation...&lt;\/div&gt;&lt;div id=&amp;quot;cmtt_related_articles&amp;quot; class=&amp;quot;cmtt_related_articles_wrapper&amp;quot;&gt;&lt;div class=&amp;quot;cmtt_related_title cmtt_related_articles_title&amp;quot;&gt;Related Articles: &lt;\/div&gt;&lt;ul class=&amp;quot;cmtt_related&amp;quot;&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/from-risk-to-resilience-the-role-of-climate-disclosure-and-scenario-analyses-for-companies\/&amp;quot;&gt;From Risk to Resilience: The Role of Climate Disclosure and Scenario Analyses for Companies&lt;\/a&gt;&lt;\/li&gt;&lt;li class=&amp;quot;cmtt_related_item&amp;quot;&gt;&lt;a href=&amp;quot;https:\/\/allianceadvisors.com\/fr\/the-importance-of-pre-agm-shareholder-engagement-cornerstone-practices-for-greater-china-2023\/&amp;quot;&gt;The Importance of Pre-AGM Shareholder Engagement Cornerstone Practices for Greater China 2023&lt;\/a&gt;&lt;\/li&gt;&lt;\/ul&gt;&lt;\/div&gt;&lt;div class=glossaryTooltipMoreLinkWrapper&gt;&lt;a class=glossaryTooltipMoreLink href=https:\/\/allianceadvisors.com\/fr\/glossary-index\/compensation-committee\/ &gt;Read more...&lt;\/a&gt;&lt;\/div&gt;\" data-link=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/compensation-committee\/\" href=\"https:\/\/allianceadvisors.com\/fr\/glossary-index\/compensation-committee\/\" data-mobile-support=\"0\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">compensation committee<\/a> if he has served as CEO of the company or its affiliates within the past five years or as CEO of a company acquired within the past five years.&nbsp;&nbsp; In conjunction with its policy update on former\/interim CEO independence, ISS is clarifying it may consider such a director non-independent after the five-year cooling off period in certain circumstances.<\/p>\n<p><strong>Pay-for-Performance Evaluation<\/strong><\/p>\n<p>ISS has updated its PFP evaluation of S&amp;P\/TSX Composite Index companies and all management SOP proposals to indicate that it may elect to use the compensation of a non-CEO named executive officer, such as a former CEO or executive chair, if that individual&rsquo;s compensation is regularly significantly higher than that of the CEO.&nbsp; This would provide a more appropriate assessment of PFP alignment.<\/p>\n<p><strong>Board Gender Diversity<\/strong><\/p>\n<p>Currently, ISS requires the disclosure and interpretation of the circumstances behind an issuer falling below the policy&rsquo;s board gender diversity thresholds before a policy exemption may be applied. ISS believes the change to remove this requirement, provides greater transparency and predictability as to how the policy will be applied and harmonizes the Canadian approach with the US market.<\/p>\n<p><strong>Board Racial\/Ethnic Diversity<\/strong><\/p>\n<p>ISS notified the Canadian market of the inclusion of a racial\/ethnic diversity standard for all TSX Composite Index boards in 2023, implemented the policy for TSX composite companies in 2024, and for 2025 updated the policy to remove the transitory language associated with the initial implementation year and addition of conditional exemptions to the final policy language.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&nbsp;&raquo;&nbsp;&raquo; font_size=&nbsp;&raquo;sm&nbsp;&raquo;]&sup1; See ISS&rsquo;s Executive Summary of Key Updates and Policy Development Process <strong><a href=\"https:\/\/www.issgovernance.com\/policy-gateway\/voting-policies\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/strong><br>\n&sup2; See ISS&rsquo;s <a href=\"https:\/\/www.issgovernance.com\/file\/policy\/active\/americas\/US-Compensation-Policies-FAQ.pdf?v=2024.12.1\" target=\"_blank\" rel=\"noopener\">U.S. Executive Compensation Policies FAQ<\/a> <strong><a href=\"https:\/\/www.issgovernance.com\/policy-gateway\/voting-policies\/\" target=\"_blank\" rel=\"noopener\">here<\/a><br>\n<\/strong>&sup3;To submit feedback, go <strong><a href=\"https:\/\/issgovernance.service-now.com\/csp\" target=\"_blank\" rel=\"noopener\">here<\/a><\/strong>[\/vc_column_text][\/vc_column][\/vc_row][vc_section css=&nbsp;&raquo;.vc_custom_1716540341709{padding: 20px !important;background-color: #f1f1f1 !important;}&nbsp;&raquo;][vc_row][vc_column][vc_column_text css=&nbsp;&raquo;&nbsp;&raquo;]成人视频 has built a team of industry specialists with deep experience relating to all our product lines. If you would like to receive a copy of our reports and reviews in future, please enter your details in the form below.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<style>.vcex-newsletter-form.vcex_687a951536cca .vcex-newsletter-form-wrap{width:600px;}<\/style><\/p><div class=\"vcex-newsletter-form vcex-module wpex-flex wpex-max-w-100 vcex_687a951536cca\"><div class=\"vcex-newsletter-form-wrap\"><form action=\"https:\/\/allianceadvisors.us17.list-manage.com\/subscribe\/post?u=7b6c51574cd7a20b61f9e0084&amp;id=ff9d243557&amp;f_id=00f866e0f0%20method=post%20id=mc-embedded-subscribe-form%20name=mc-embedded-subscribe-form\" method=\"post\" class=\"wpex-flex\"><label class=\"vcex-newsletter-form-label wpex-text-current wpex-flex-grow\"><span class=\"screen-reader-text\">Enter your email address<\/span><input class=\"vcex-newsletter-form-input\" type=\"email\" name=\"EMAIL\" placeholder=\"Enter your email address\" autocomplete=\"off\" required><\/label><button type=\"submit\" value=\"\" class=\"vcex-newsletter-form-button wpex-flex-shrink-0 theme-button\">Sign Up<\/button><\/form><\/div><\/div>[\/vc_column][\/vc_row][\/vc_section]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row content_placement=\u00a0\u00bbbottom\u00a0\u00bb column_spacing=\u00a0\u00bb0px\u00a0\u00bb css=\u00a0\u00bb.vc_custom_1733770999606{background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}\u00a0\u00bb min_height=\u00a0\u00bb450px\u00a0\u00bb][vc_column css=\u00a0\u00bb.vc_custom_1734542955491{background-image: url(https:\/\/allianceadvisors.com\/wp-content\/uploads\/2024\/12\/AdobeStock_900894768.jpg?id=53055) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}\u00a0\u00bb wpex_bg_position=\u00a0\u00bbcenter center\u00a0\u00bb][vc_column_text align=\u00a0\u00bbleft\u00a0\u00bb css=\u00a0\u00bb.vc_custom_1734542916551{padding-top: 30px !important;padding-right: 30px !important;padding-bottom: 30px !important;padding-left: 30px !important;background-color: rgba(255,255,255,0.84) !important;*background-color: rgb(255,255,255) !important;border-color: #f5b335 !important;}\u00a0\u00bb width=\u00a0\u00bb600px\u00a0\u00bb color=\u00a0\u00bb#393939&Prime; font_size=\u00a0\u00bbd:6xl|pp:30px\u00a0\u00bb line_height=\u00a0\u00bbtight\u00a0\u00bb font_weight=\u00a0\u00bb600&Prime;] ISS Releases 2025 U.S. and Canadian Voting Policy Changes [\/vc_column_text][vc_column_text align=\u00a0\u00bbleft\u00a0\u00bb css=\u00a0\u00bb.vc_custom_1734542934249{padding-top:&hellip;<\/p>\n","protected":false},"author":15,"featured_media":53057,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[235],"tags":[],"post_series":[],"ppma_author":[463],"class_list":["post-53026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-whitepapers-fr","entry","has-media"],"authors":[{"term_id":463,"user_id":15,"is_guest":0,"slug":"shirley","display_name":"Shirley Westcott","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/791f096a465d2b60d28c5dbbeae347131fa69393350b87e61a282f5b71333b61?s=96&d=mm&r=g","author_category":"","first_name":"Shirley","last_name":"Westcott","user_url":"","job_title":"","description":""}],"_links":{"self":[{"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/posts\/53026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/comments?post=53026"}],"version-history":[{"count":10,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/posts\/53026\/revisions"}],"predecessor-version":[{"id":53223,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/posts\/53026\/revisions\/53223"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/media\/53057"}],"wp:attachment":[{"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/media?parent=53026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/categories?post=53026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/tags?post=53026"},{"taxonomy":"post_series","embeddable":true,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/post_series?post=53026"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/allianceadvisors.com\/fr\/wp-json\/wp\/v2\/ppma_author?post=53026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}