Glass Lewis Announces Switch to Dutch Firm CGLytics for Proxy Data
June 15, 2019
Proxy advisory firm Glass Lewis & Co recently announced that CGLytics would serve as its global provider of compensation data and analytics but with an initial focus on the North American, Australian and European markets. The new partnership, which expands on existing services CGLytics provides to Glass Lewis in Europe, would replace Equilar as the proxy advisor’s North American Data provider.
Based on a press release, Glass Lewis will integrate CGLytics data into the proxy voting policies of institutional investors through its voting platform, Viewpoint. Further, Glass Lewis’s say on pay analysis will be available through the platform “giving investors, issuers, advisors and board members the exact same data, tools and insights Glass Lewis uses to review and model CEO and executive compensation plans and prepare for engagements with all stakeholders.” The companies argue that the new arrangement will give transparency into Glass Lewis’s analysis “that was not widely available and is needed for successful governance and stewardship.”
The announcement marks a change seven years after Glass Lewis began integrating Equilar information into its analysis, which started with the adoption of Equilar’s proprietary peer group methodology in 2012 . That move had a measurable impact on peer group analysis and influenced ISS’s decision to revise its own GICS-based peer group methodology to remove questionable groupings. Glass Lewis also began using Equilar data at that time.
CGLytics is not widely known in the North American market, and the test of the partnership will occur in earnest as the transition occurs in that market.