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.
2018 Guidelines for Japan, Korea, Hong Kong are now available for client download, or by request on our website. Among other updates, the 2018 Japan Guidelines:
- Incorporate a discussion of how Glass Lewis considers gender diversity on boards, including a phased policy that will see certain directors face against/withhold recommendations if boards do not include a female board member, or provide a cogent explanation for their absence in 2019.
- Refine our policies to reflect emerging market practice and developing shareholder expectations, such as on the evaluation of board commitments, and the assessment of independence in relation to takeover defense plan.
- Incorporate a discussion of how Glass Lewis views amendments pertaining to allowing board discretion to allocate profits without shareholder approval.
Revisions to the 2018 Korean Guidelines include updated policies relating to the assessment of board independence and committees, along with increased discussion of local market and regulatory developments. For Hong Kong, the new guidelines cover dual-class share structures, gender diversity on boards, and the formation of Communist Party committees.
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.