Institutional Shareholder Services (ISS) currently offers institutional investors a data analysis product called QuickScore that is designed to identify governance risks within portfolio companies. QuickScore compares a companys governance structure against other companies in the Russell 3000. It provides an overall company score as well as drill-down scores in each of four sub-categories: Board Structure, Compensation/Remuneration, Shareholder Rights and Audit.
In February 2014, ISS will release QuickScore 2.0 with enhanced methodology and coverage. QuickScore 2.0 will include the following updates:
*Event-driven data updates ISS will provide ongoing updates to a companys profile and score based on changes to a companys governance structure identified in publicly available information.
*New and updated governance factors ISS has added a number of new governance factors to its methodology, including factors related to board diversity and refreshment, and director compensation.
*Zero-weight factors ISS has added informational-only factors that do not impact a companys score.
*Modified scoring ISS has modified the scoring methodology to optimize alignment with ISS voting policy, global governance standards and best practices.
*Expanded coverage ISS has expanded coverage for companies in the U.K. and Australia.
The official launch of QuickScore 2.0 will take place on February 18. However, companies are in the process of verifying their data before new governance scores are calculated. The data verification period will run from January 27 to February 7. General information about QuickScore can be found here. Detailed information regarding the QuickScore 2.0 methodology can be found here.