Institutional Shareholder Services Inc. (ISS) recently announced the launch of a new data verification portal covering equity-based compensation plans included for shareholder approval in the proxy statements of US companies and companies covered under ISS' US policy. ISS also released FAQs on the verification process. The new portal was created to increase transparency and accuracy in ISS' analysis of equity plans.

All US companies, and companies covered under ISS' US policy, with an equity plan submitted for approval in a proxy statement filed with the SEC after September 8, 2014 may use the new portal to verify key data points used by ISS in evaluating the plan. However, as described in an ISS summary of the process, companies filing their proxy statement 30 days or less prior to their meeting date will not be eligible to verify their data through the portal.

Companies are not required to use the portal but are encouraged to do so. To use the portal, companies must first register to receive login details. The new portal is separate from ISS Governance QuickScore, which focuses on governance risk, and requires separate registration (for more on QuickScore, see Practice Note, Developing Relationships with Proxy Advisory Firms: ISS: ISS Governance QuickScore Overview).

Once ISS notifies a company that its data is available for verification, it will have just two business days to review the data and request any modifications. The data will be available from 9:00 a.m. ET on the first business day after the data is collected and published to the portal until 9:00 p.m. ET on the second business day. For most companies, the data verification period will open within 12 business days following submission of definitive proxy materials to the SEC.

Companies requesting modifications will generally receive a reply from ISS within five business days. Results of ISS' review will also be posted on the portal.