02 Jun. 2011 | Comments (0)
- Understand how compensation programs stack up against ISS standards: Figure out where your executive pay practices deviate from ISS and be ready to explain why they do.
- Assemble a task force: Anticipate when ISS is going to issue its recommendation and have a task force available to respond to the report.
- Know your limits: Instead of criticizing the ISS methodology, focus on factual errors in the report and don’t make inflammatory remarks.
- Reach out to shareholders: The difference between companies that have passed and those that have failed the vote is often willingness to engage directly with shareholders.
- Consider supplemental materials: Filing supplemental materials that might reiterate what is already in the Compensation Discussion and Analysis may help companies reach investors who they might not otherwise be able to meet in person.
- Changing compensation practices: ISS has been willing to change its vote recommendation when companies change compensation practices retroactively, as was the case with Disney (removing golden parachute excise tax gross-ups for several executives) and General Electric (adding performance goals to CEO Jeffrey Immelt’s stock option grant).