ISS Releases Updated QualityScore Methodology

ISS has released 4Q 2018 updates to its Corporate Governance QualityScore metrics, which took effect on November 29, 2018. The ISS Corporate Governance QualityScore is a numeric score that indicates a company’s governance risk across the following four categories: Board Structure, Compensation/Remuneration, Shareholder Rights and Takeover Defenses and Audit and Risk Oversight. Key changes include a new Board Diversity subcategory consisting of nine factors focusing on female representation and age. ISS also introduced two new factors to its Board Controversy subcategory focusing on the percentage of vote support for the CEO and Board Chair at the most recent annual meeting. A summary of the updates is available here.