Proxy advisors will no longer have an opinion

Glass Lewis has announced plans to shift away from their traditional one-size-fits-all proxy voting recommendations in favour of tailored voting frameworks for clients from 2027.

The change means that Glass Lewis will no longer publish vote recommendations based on its house policy. Instead, Glass Lewis plans to help clients create bespoke voting frameworks that reflect their individual investment philosophies and priorities.

One reason to discontinue the “benchmark” voting policy appears to be increasing political pressure on proxy advisors in the US.

The change in practice is not limited to their US clients – we understand Glass Lewis in Australia is aiming for the same timeline to implement the new approach.

Boards in ASX-listed companies can expect greater variability in voting behaviour from their institutional shareholders. It will become more important to engage proactively with key shareholders throughout the year to understand individual perspectives.

ISS has not yet announced if it will adopt a similar approach.

The announcement from Glass Lewis can be found HERE.