Glass Lewis’ Policy Guidelines provide an overview of our approach to governance and proxy research. In developing our policies, we consider a diverse range of perspectives and inputs, with ongoing analysis of regulatory developments, academic research and evolving market practices as a starting point. We incorporate insights gained from discussions with institutional investors, trade groups and other market participants, as well as meetings of the Glass Lewis Research Advisory Council. Further, our engagement meetings with over 1,000 public companies each year help shape our guidelines by adding essential market- and industry-specific context.
The Continental Europe Guidelines summarise the underlying principles and definitions used by Glass Lewis and European regulatory authorities when applying market-specific policies across continental Europe. We have also released country-specific guidelines, tailored to local corporate governance regulations, codes, practices and structures, which outline the Glass Lewis approach to analysing issues for companies in that market, including where that approach differs from our pan-European approach.
Among other updates, the 2018 Guidelines:
- Align with the revised requirements of the EU Directive on Non-Financial Reporting, which takes effect for large European corporations in 2018;
- Address the emerging best practice of clearly disclosing the board’s skills and competencies;
- Harmonize our approach in areas such as shareholder dissent and board responsiveness, and clarify certain methodologies, including in relation to board ratification proposals; and
- Reflect a range of local market regulatory updates, from expanded disclosure guidance in the German Kodex to the UK’s Parker Review on Boardroom Diversity.
We believe in transparent, aligned and well-governed markets in service of our purpose to empower clients seeking to maximize long-term shareholder value. As such, investor clients and non-clients, issuers and other stakeholders are invited to comment on these updates, as well as any aspect of the Policy Guidelines, at any time throughout the year. Your feedback will be taken into consideration as we continue to evaluate our guidelines on an ongoing basis and formally update them annually.