Institutional investor engagement is the process of companies meeting with the institutional investors holding significant quantities of the company's stock for the purpose of learning about the investors' perspective on executive compensation and related governance issues, a process that has accelerated with the 2011 introduction of mandatory nonbinding say on pay votes in the U.S. Investors differ greatly in their approaches to the evaluation of executive compensation and voting on say on pay, and it is a best practice for companies to meet with their investors regularly. Engagement practices vary by company circumstances and ideally should be initiated outside of proxy season, so that where possible key issues can be vetted before the rush of proxy season, and should be tailored to each investor. Like companies, investors differ in their perspectives and strategies, with many of the larger institutional investors considering corporate governance and executive compensation issues so fundamentally important that they have departments dedicated to proxy analysis, while other firms may place great reliance on the input and recommendations of proxy advisory firms like ISS and Glass Lewis. A best practice is for companies to focus on their own pay for performance story and provide the investors with clear rationales for the pay decisions made by the compensation committee. Companies should carefully consider which members of management should be part of the engagement team and whether circumstances warrant the participation of a company director.