RiskMetrics' 2009 proxy voting policies to focus on executive compensation, board structure

By Lisa Kerner

Charlotte, N.C., Nov. 25 - RiskMetrics Group said it will apply its newly released 2009 proxy voting policies to all companies with shareholder meeting dates on or after Feb. 1.

According to RiskMetrics, the three main areas of focus for its 2009 policy updates are executive compensation, board structure and audit practices, all brought to the forefront due in part to unprecedented market turmoil.

The New York-based risk management and corporate governance services provider's latest voting policies are the result of an "extensive policy formulation and updating process that included outreach to and input from hundreds of institutional investors and corporate issuers," a RiskMetrics news release said.

RiskMetrics said its guidelines on executive compensation have been expanded to examine practices that divorce pay from performance and provisions that pay severance for voluntary departures more than a year following a takeover.

In addition, RiskMetrics' policy on pay-for-performance is being aligned to the provisions of the U.S. Treasury's rules under the Trouble Asset Relief Program.

As it has in the past, RiskMetrics said it will generally recommend in favor of shareholder proposals requiring the chair position be filled by an independent director.

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