Institutional Shareholder Services (ISS), the US proxy advice firm, has recommended that shareholders in Lattice, the UK gas distribution company, oppose the company's pay policy which has been put forward for investor approval at the firm's July 15 AGM.

ISS operates a compensation model that assesses the cost to shareholders of a company's remuneration policy, and benchmarks it to peer group companies. ISS analyst, Claudio Gallicchio, estimated that Lattice's executive pay policy could cost shareholders a maximum of more than 7% of the company's market value.