Multidimensional, Regionally Tailored Modeling Tool Empowers Compensation Professionals to Design More Effective Pay Programs

San Francisco, September 16, 2025 – Glass Lewis, one of the world’s leading providers of corporate governance data and insights and proxy voting services to institutional investors and companies, today announced the launch of its new pay-for-performance modeling tool. Available on Glass Lewis Connect, the tool provides compensation professionals at issuer companies and their advisors in North America, Europe, and the UK a powerful way to assess and design executive pay programs.

Pay-for-performance alignment remains a key focus for shareholders worldwide and a critical marker of governance quality. Yet compensation professionals often face the challenge of building competitive pay plans that attract, retain and motivate executives while demonstrating a clear link between pay and performance. With Glass Lewis’ new self-service modeling tool, companies and their advisors gain direct visibility into how shareholders evaluate pay-for-performance alignment.

“For investors, the way executive pay is constructed sends a powerful signal about a company’s governance standards,” said John Wieck, Glass Lewis’ Chief Operating Officer. “Our pay-for-performance modeling tool equips companies and their advisors to better align with shareholder expectations, proactively manage potential risks, conduct robust benchmarking, and strengthen disclosure and communication.”

Transparent Methodology Underpins the Tool

The modeling tool is powered by Glass Lewis’ enhanced pay-for-performance methodology, which produces a holistic, multifactor score (0–100) and an associated concern level for each covered company, ranging from negligible to severe. Beginning on January 1, 2026, the methodology will also be integrated into Glass Lewis’ corporate governance research, ensuring consistency between the analysis investors see and the insights available to companies.

Key updates to the methodology include:

• Multi-Test Scorecard: Six distinct tests for North America and five for Europe and the UK, designed to evaluate pay alignment from multiple angles.
• Five-Year Measurement Horizon: Extends the lookback period from three to five years to better capture long-term performance.
• Peer Expansion: Expands existing peer selection methodology to additional markets and introduces market cap bands and benchmarks, resulting in better global alignment in peer approaches.
• Multiple Pay Definitions: Incorporates various pay measures like granted pay, realized pay, and compensation actually paid (CAP) to provide a more complete picture of pay outcomes.

An Intuitive, Powerful Platform

Compensation professionals and their advisors can access Glass Lewis’ pay-for-performance modeling tool on Glass Lewis Connect, a dynamic platform that enables:

• Side-by-Side Comparisons: Compare company forecasts against the Glass Lewis baseline to see the potential impact of various pay outcomes.
• Peer Group Foresight: Review and test pay alignment using the most current Glass Lewis peer group before its governance research is published.
• Dynamic “What If” Scenarios: Run unlimited scenarios using projected compensation and performance data to test potential program changes.
• Access Detailed Data: Drill into each test to better understand possible concern areas and their impact on scores.

For more information about Glass Lewis’ new pay-for-performance modeling tool, please visit here.

About Glass Lewis

Founded in 2003, Glass Lewis is a leading global provider of independent corporate governance, stewardship, and proxy voting solutions. The firm serves more than 1,300 investment managers and pension funds globally, who use its high-quality corporate governance and ESG research and proxy voting software to carry out their fiduciary duties. Glass Lewis also helps companies understand and implement corporate governance best practices and how investors view them. Headquartered in San Francisco, Glass Lewis has offices in the United States, United Kingdom, Europe, Asia, and Australia. For more information, please visit www.glasslewis.com. 

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