Tuesday, April 13, 2021
ISS 2021 Updates
Board of Directors
ISS has also addressed gender diversity on board of directors. For S&P/TSX Composite Index companies, effective February 2022, ISS recommends withholding votes for the Chair of the Nominating Committee or Chair of the committee designated with the responsibility of a nominating committee, or Chair of the board of directors if no nominating committee has been identified or no chair of such committee has been identified, where women comprise less than 30% of the board of directors, and: (i) the company has not disclosed a written gender diversity policy; or (ii) the company’s formal written gender diversity policy does not include a commitment to achieve at least 30% women on the board over a reasonable timeframe.
The gender diversity policy should include an explicit percentage or numerical target for women’s representation that is at least 30% of the board. Where such target has not been attained, a reasonable timeframe should be provided under which the company commits to achieving a representation of 30%.
This update is intended as a summary only and should not be regarded or relied upon as advice to any specific client or regarding any specific situation.
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