On Nov. 4, 2022, ISS released its proposed benchmark policy changes for 2023. ISS is inviting comments through Wednesday, Nov. 16. Below is a summary of the updates planned for the U.S. market.
Board Gender Diversity
As announced last year, in 2023. 1 ISS will be extending its board gender diversity policy to all U.S. public companies and foreign private issuers (FPIs). 2 Currently, it only applies to Russell 3000 and S&P 1500 companies. Under the policy, ISS will recommend against the nominating committee chair (or other directors on a case-by-case basis) if there are no women on the board.
ISS is also adding a one-year grace period for companies that have no female directors but disclose at least one board member who identifies as non-binary.