My company is interested to adopt an on-going Transferable Stock Option (TSO) program. Does ISS support such program?
A.) Transferable stock options have been marketed as potentially the next generation of equity awards. Shareholders should have a voice in such programs as the newness of such program may spark off an unprecedented trend in the marketplace. The authority to transfer stock options to a third-party financial institution without revealing the mechanics and structure of the program is insufficient for ISS to recommend a vote “FOR” the equity plan proposal. ISS has detailed the TSO policy for an on-going TSO program and a one-time TSO program in the 2006 Policy Updates. In 2007, ISS has removed the forfeiture calculation for all award types. Therefore, the details and the structure of an on-going TSO program must be disclosed in order for shareholders to understand the potential implication and for ISS to model the appropriate cost of the program. The specific criteria to be considered in evaluating these proposals continue to evolve and may include, but not limited, to the following: eligi
