How Glass Lewis improved their executive compensation analysis and Say on Pay recommendations for European markets
In the continuously evolving and sometimes volatile economic times, investors have to make tough decisions. To ensure they are making the best possible decisions they require greater insights into activities within portfolios. Whether it’s sustainability practices, gender and cultural diversity, or executive compensation and remuneration, Glass Lewis has experienced, first-hand, the increasing demand for additional information from their investor clients.
Voicing their expectations of more detailed executive compensation analysis and consistency across borders when assessing pay practices, Glass Lewis Europe listened closely to their investor clients and in the 2018 proxy season turned to CGLytics to help define a new peer group methodology.
Two distinct comparator peer groups were defined: cross-border industry groups and in-country groups based on company size. This peer group refinement provided a standardized approach to pay analytics using common points of comparison for companies in the European market.
However, not all companies are alike. Where unique circumstances in pay plans required bespoke pay analysis using different indicators or uniquely designed peer groups, Glass Lewis could use CGLytics SaaS platform to drill-down and perform a multitude of quantitative comparisons and tests.
Implementing a standardized display that allows every company to be compared on a like-for-like basis, while retaining the flexibility to utilize an array of customized key performance metrics, Glass Lewis yielded overwhelmingly positive feedback from investor clients and from companies.
Glass Lewis now produce quantative pay analysis and peer comparisons that are second-to-none and offer access to their quantitative executive remuneration analysis and peer group modeling tools directly to their investor clients and corporate issuers via CGLytics.