Institutional Shareholder Services (ISS), a subsidiary of investment company MSCI, is the largest and most influential proxy advisory firm with over 1,700 clients and a 61 percent market share in proxy advisory services, according to the Mercatus Center. ISS’s influence has grown significantly in recent years as institutional investor ownership has increased and say on pay has been mandated, reinforcing its role as a major player in executive compensation and corporate governance policy. ISS provides proxy advisory research and voting recommendations, an electronic voting platform, executive compensation data and analytics, engagement support, and consulting services. ISS has been heavily criticized for perceived conflicts of interest stemming from providing governance consulting to companies whose proxies it analyzes, which are provided through its ISS Governance Services subsidiary, and the use of inaccurate data in its proxy voting recommendations in certain select cases. Additionally, ISS has also been under fire for several of its proxy voting policies, including its peer group selection process and its pay for performance evaluation. ISS significantly revamped its peer group selection for 2013, which appears to have reduced peer group complaints. In addition, in 2012, ISS established a "Feedback Review Board" to review suggestions and complaints from various stakeholders. The Center will continue to engage ISS to encourage it to adopt board-centric pay and related governance policies, and advocate for effective oversight of the proxy advisory firm industry.