TheCorporateCounsel.net

Semafor reported last week that proxy advisor Glass Lewis – whose recommendations carry weight with many pensions and other institutions – may be considering an eventual pivot away from “house policies” and toward helping investors develop their own custom policies. Here’s an excerpt:

Glass Lewis, the scrappier and smaller rival of Institutional Shareholder Services (ISS), is discussing a dramatic shift to essentially scrap its “house view” on ballot measures ranging from takeover battles to complaints about gender balance, political donations, and carbon emissions, according to people familiar with the matter and an internal memo seen by Semafor. The move is partly in response to heightened conservative backlash, they said.

Glass Lewis would help investors develop their own custom voting policies, handle the paperwork and regulatory reporting, and provide data and research. The changes would be phased in over a few years, and the firm would likely continue to make explicit recommendations in the meantime.

It’s important to note that this appears to be in the early stages of consideration – and Glass Lewis hasn’t made a public announcement – so things could change. That said, it’s consistent with undercurrents of disruption that are happening with shareholder voting. Ongoing criticism of proxy advisors (which Meredith blogged about today on The Proxy Season Blog), new technologies that could make it easier to develop custom policies, and the growing push for “investor choice” suggest that some sort of change is coming. All of these percolating changes could add up to suspenseful proxy seasons for companies. Stay tuned!

– Liz Dunshee