Senior analyst Whitney Cook explains that ISS’s assessment of Covid-related changes is highly correlated to concern level. Examples from CAP’s recent analysis (by Principal Shaun Bisman and analyst Theo Allen) on ISS’s assessments since the revisions to its governance rating methodology further support the observation.
Principals Shaun Bisman and Bonnie Schindler emphasize the importance for companies to build recruitment pipelines that create more diversity and to disclose their plans to meet the new requirements for board refreshment and diversity goals.
Principals Shaun Bisman and Bonnie Schindler expect proxy advisors to require clearly justified rationales from companies making adjustments to their annual and long-term incentive changes whether due to the global health crisis or the economic climate.
Experts predict an incoming wave of shareholder proposals on human capital issues. CAP’s COVID-19 company actions tracker shows that companies have already begun taking actions as a significant number of companies have reduced executive salaries and board pay.
Partner Kelly Malafis addresses risk management mechanisms in executive incentive design through clawback policies.
Principal Shaun Bisman discusses the role of institutional investors and compensation committees in advancing diversity in organizations when determining incentive plans for executives.
Principal Shaun Bisman notes that boards likely won’t make any decisions regarding changes to bonus programs in response to Biden’s promise to raise taxes until after the election.