Institutional Shareholder Services Announces Updates to Governance Risk Indicators

Institutional Shareholder Services ("ISS") has updated its Governance Risk Indicators model, which is the tool it uses to measure governance-related risk.The updated model is designed to better align its ratings with ISS’ proxy vote recommendations and will be in effect for all covered U.S. companies beginning February 24, 2012. To this end, ISS has (i) expanded and refined the content of the model and (ii) redesigned the scoring methodology to ensure that risk from individual governance practices is appropriately reflected in the scoring and communicated in a transparent manner.

Originally Published: 
14/12/2011