In a note to clients recently, Glass Lewis provided more detail about its shift to a multi-perspective model that it announced about a year ago. Last year, Glass Lewis announced that rather than relying principally on a single set of global voting policies, it intended to develop an approach offering clients multiple analytical perspectives reflecting different investment and governance philosophies. At the time, however, Glass Lewis had not settled on the details of the new model and said additional information would follow.
Glass Lewis has now provided clients with an initial roadmap for that transition, including a proposed multi-perspective research framework and plans to solicit client feedback before the framework is finalized. Here’s a summary of this latest development:
Proposed Framework Would Offer Four Distinct Perspectives
Under the proposed framework, Glass Lewis would offer four research perspectives, each approaching governance, performance and sustainability considerations somewhat differently:
- Business Fundamentals. This perspective would allow greater flexibility in applying governance standards where a board and management team have established a strong track record of delivering shareholder returns.
- Foundational Governance. This approach would emphasize adherence to core corporate governance practices as an important mechanism for protecting shareholder value over the long term.
- Global Stewardship. This perspective would combine fundamental governance principles with heightened scrutiny of sustainability-related risks that are financially material and could affect long-term shareholder value.
- Sustainability Focused. This approach would take a longer and broader view of sustainability risks, including risks that may become financially material over time or across an investment portfolio. It would also recognize asset owners’ fiduciary interest in the overall stability and integrity of the markets in which they invest.
New Framework Expected in September 2027
Glass Lewis plans to seek client input before implementing the new model. It will distribute a consultation paper and survey, together with materials comparing the four proposed perspectives. A formal comment period is expected to begin next month.
The new research perspectives are currently targeted to become operational in September 2027, giving Glass Lewis time to incorporate client feedback and further develop the framework before launch.
Benchmark Voting Policies Remain in Place for the 2027 Proxy Season
Glass Lewis’ existing Benchmark Voting Policy Guidelines continue to apply for the 2027 proxy season, with only limited revisions intended to address significant regulatory and corporate governance developments that arose this year.
Glass Lewis currently expects to publish its updated Benchmark Voting Policy Guidelines in early October. So you should continue to focus on the traditional Benchmark guidelines – while also keeping an eye on the development of the new multi-perspective framework that is expected to follow.
Authored by
Broc Romanek