On January 25, 2012, Institutional Shareholder Services Inc. (ISS) released a set of frequently asked questions relating to its analysis of compensation policy issues for 2012 (more on the details of the ISS methodology and policies here and here). The FAQs address the ways in which ISS will evaluate executive pay-for-performance, management say-on pay responsiveness, and equity plans.   While much of the content relates to the technical aspects of the quantitative methodology used by ISS in evaluating whether there is an executive pay-for-performance misalignment, there are more practical points, as well.  For example, the FAQs address circumstances in which an adverse pay-for-performance recommendation from ISS could lead to an ISS recommendation for an AGAINST vote on an equity plan.

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