ISS to Introduce QuickScore 3.0 on Friday: New Governance Factors Previewed; Details to be Published on October 31; Data Verification Period to Follow Through November 14Sullivan & Cromwell LLP - October 27, 2014
Institutional Shareholder Services, the proxy advisory firm, has announced that it will publish the details of an update to its QuickScore corporate governance rating system, styled as “QuickScore 3.0,” this Friday, October 31, including several new governance factors that will apply to U.S. companies for the 2015 proxy season.
This will be followed by a data verification period lasting from 9am EST on November 3 through 8pm EST on November 14. During this period, companies may access the underlying data that ISS will use to construct their QuickScore rating through ISS’s website. New scores will then be released on November 24 and begin appearing in ISS research reports. ISS indicates that the format of the reports will be revised to show historical scores, data changes and a trend analysis, rather than just a static rating.
Because some institutional shareholders may rely, in part, on a company’s corporate governance ratings to make voting and investment decisions, companies should take appropriate steps to ensure that the information on which these ratings are based is accurate. Information on QuickScore, including the technical documentation and information on data verification, is and will be made available on ISS’s website at http://www.issgovernance.com/.