Glass Lewis Announces End To Benchmark Recommendations

On October 14, 2025, Glass Lewis announced that it will no longer offer its benchmark voting recommendations starting in 2027. In lieu of benchmark voting recommendations, it will instead offer a set of options. Glass Lewis cited the growing split between how the United States and European investors approach issues like fiduciary duties and sustainability. Also, as reported by Reuters, a Glass Lewis spokesperson explained that the change is indirectly a result of criticisms that it has faced from U.S. Republican politicians, stating "[t]he whole geopolitical environment is attached to this."

Over the past year, Glass Lewis and Institutional Shareholder Services ("ISS"), the two dominant proxy advisory firms, have been under pressure from politicians with respect to topics like executive pay, diversity, equity and inclusion ("DEI") initiatives and environmental politics. For example, in Texas, a new law, known as Senate Bill 2337 ("SB 2337") imposed new regulations on proxy advisory firms. SB 2337 scheduled to take effect on September 1, 2025. However, on August 29, 2025, the U.S. District Court for the Western District of Texas issued a preliminary injunction against SB 2337, blocking its enforcement against ISS and Glass Lewis. The trial is set for February 2, 2026. If SB 2337 is upheld, proxy advisors issuing recommendations for companies that are either headquartered in Texas, incorporated in Texas, or redomesticating to Texas will be subject to significant new disclosure and procedural requirements.

Also, notably earlier this year, while ISS and the major institutional investors revised their proxy voting guidelines mid-proxy season to address a series of Presidential executive orders related to DEI, Glass Lewis stayed firm and retained its existing guidance, which included benchmarks related to diversity in board composition.