The Investor Stewardship Group is a collective of some of the largest U.S.-based institutional investors and global asset managers, along with several of their international counterparts. It was formed to develop a sustained initiative to establish a framework of basic standards of investment stewardship and corporate governance for U.S. institutional investor and boardroom conduct. The ISG is being led by the senior corporate governance practitioners at institutional investor and investment management firms.
The professional experience of the members’ senior corporate governance practitioners over a number of years has shown that good corporate governance and responsible stewardship are fundamental to creating long-term value for U.S. companies and the broader U.S. economy. The ISG was formed to bring all types of investors together to enable them to speak with one voice on these fundamental issues of corporate governance and investment stewardship. The result is a framework consisting of a set of stewardship principles for institutional investors and corporate governance principles for U.S. listed companies.
STEWARDSHIP PRINCIPLES for INSTITUTIONAL Investors:
Corporate Governance PRINCIPLES for U.S. Listed Companies :
 The Corporate Governance principles do not apply to U.S.-registered investment companies and business development companies, because they are not operating companies and have unique corporate governance practices as provided by law.
No, the framework is not intended to be prescriptive or comprehensive in nature. Companies and investors are free to apply it in a manner they deem appropriate. However, as guidance, we have provided our rationale and expectations that underpin each principle. All founding members of the ISG agree on the framework, though members may have higher expectations with respect to corporate governance practices.
We encourage shareholders’ elected representatives — company directors — to apply the corporate governance principles at the companies on whose boards they serve, and we encourage institutional investors to incorporate these principles into their proxy voting and engagement guidelines and practices.
The framework goes into effect January 1, 2018 to enable U.S. listed companies time to adjust to the corporate governance principles in advance of the 2018 proxy season.
The framework is not intended to be static. It will be evaluated and revised by the ISG membership periodically as warranted by the evolution of the corporate governance and stewardship landscapes.
The founding members have created a steering committee that will establish the governing framework for the ISG. It is expected that the steering committee will be in place through January 1, 2018 when the framework becomes effective. More information about ISG’s governance will be posted as soon as it is available. All members of the ISG will be welcome to participate in the governance process once it is established.
We invite all asset managers and asset owners investing in the U.S. capital markets to join us in this historic effort by signing onto or endorsing the framework. Simply visit www.isgframework.org/join-isg. Please note that the endorsement option is available only to non-U.S. institutions investing in the U.S. market.
The ISG is a voluntary group and members are expected to self-police. Potential members must review their policies before joining to make sure that they conform to the framework. Members should periodically review their governance and stewardship policies to ensure that they remain consistent with the framework.
US Asset Managers:
US Asset Owners:
Ex-US Asset Owners/Managers: