Does the pay-for-performance policy still apply in 2007?
A.) Yes. ISS will continue to pay close attention to companies that have negative one-year and three-year total shareholder returns. While the year-over-year change in total direct compensation will not be displayed in the executive compensation section, ISS will sum the following pay components for the previous fiscal year: base salary, bonus, present value of stock options, restricted stock and LTIP payouts and compare against the following pay compensation for the current fiscal year: base salary, bonus, stock awards (as disclosed in the Grants of Plan-Based Awards table), option awards (as calculated by Equilar) and non-equity incentive plan compensation. In cases where there is an increase in pay from the previous year, ISS will review the company’s compensation discussion & analysis report and any narrative disclosure to gain a further understanding of the pay increase.
