August 12, 2020

August 12, 2020, Statement from ISS President & CEO, Gary Retelny

ROCKVILLE, Md. (August 12, 2020) — “The SEC’s July 22 rule regarding the provision of proxy voting advice is based on the novel view that such advice constitutes a solicitation, a stance we firmly believe is inconsistent with the plain meaning of the federal securities laws. And while last month’s rulemaking provides for certain exemptions to aspects of the SEC’s solicitation rules, we remain concerned that the rule will be used or interpreted in a way that could hamper our ability to continue to deliver to clients the timely and independent advice that they rely on to help make decisions with regard to the governance of their portfolio companies. We have today informed the U.S. District Court for the District of Columbia and the Commission of our intent to resume our lawsuit for many of the same core reasons we outlined in our October 31 complaint, as well additional concerns that we will articulate in the weeks ahead. Litigation is something we take extremely seriously but believe it necessary at this juncture to protect ISS, our clients, and, ultimately, the integrity of our work.”

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