What effect will the rounding of SVT, VPD, and allowable caps to the nearest whole number have on vote recommendations in 2007?
A.) SVT as a percentage of market value, VPD, and allowable caps will continue to be calculated to the second decimal place, but for the purpose of deriving a vote recommendation, ISS will compare a company’s rounded SVT to its rounded allowable cap. In cases where a company’s rounded SVT is equal to its rounded allowable cap (for e.g., both are 8 percent), the equity plan proposal will “pass” and ISS will recommend a vote “for”. VPD will be presented on both a rounded and non-rounded basis, and will continue to have no impact on vote recommendations.
