Glass Lewis will shortly be seeking input from corporate issuers on potential changes to its compensation methodology, according to a blog post from proxy solicitor Georgeson. Glass Lewis has finalized its June 2019 announcement that it would be moving from Equilar to CGLytics for its global provider of compensation datasets and analytics, noting that as of January 2020 it will no longer use any Equilar data or peer groups in any of its products. In addition, the proxy advisor has stated it will be the sole source of its own research reports and recommendations going forward.
According to Georgeson, Glass Lewis is considering the following changes to its compensation methodology:
- The (much contested) use of A-F letter grades in scoring pay for performance alignment
- The most appropriate methodology for selecting peer groups
- The most appropriate performance metrics (from both investor and issuer perspectives)
- How incentives should be best valued from an investor perspective