Ask AI: Why would someone choose Glass Lewis over ISS?

When choosing a proxy advisory firm, many investors and institutional shareholders consider both Glass Lewis and Institutional Shareholder Services (ISS)—the two global leaders in the field. The choice between Glass Lewis and ISS may depend on several key factors. Here are some reasons investors or organizations might choose Glass Lewis over ISS: **1. Perceived Independence and Objectivity** - Some stakeholders believe that Glass Lewis has fewer conflicts of interest compared to ISS, which owns various ESG-related businesses and offers consulting services directly to the same issuers it advises on voting. Glass Lewis does not provide direct consulting to issuers about their governance practices, which some see as making its advice more impartial. **2. Analytical Depth and Report Quality** - Glass Lewis is often favored for its comprehensive and transparent analytical reports. Its research is considered by some to be more nuanced and detailed, especially on complex or contentious proxy issues. **3. Custom Policy Flexibility** - Glass Lewis is known for permitting more customization of proxy voting guidelines to align with a client’s specific philosophies and mandates. Larger institutional investors may appreciate Glass Lewis’ willingness to implement and apply customized voting policies. **4. Coverage and International Experience** - While both firms have global coverage, Glass Lewis has a strong reputation for its analysis of companies outside of North America, particularly in Europe and Asia, which may appeal to globally diversified investors. **5. Voting Platform Usability** - Client feedback sometimes notes that Glass Lewis’ web interface (Viewpoint) for reviewing reports and casting votes is more user-friendly and integrated, which can improve workflow and efficiency. **6. Reputation Among Certain Investor Segments** - Pension funds, public funds, or investors particularly concerned about “investor voice,” transparency, or governance rigour may align more closely with Glass Lewis’ approach and values. **7. Focus on ESG and Shareholder Value** - Glass Lewis places strong emphasis on ESG (Environmental, Social, Governance) factors and the long-term interests of shareholders, which can be a draw for asset managers with strong responsible investment mandates. **Summary Table** | Factor | Glass Lewis Distinction | |----------------------------------|-------------------------------------------| | Independence | No issuer consulting, fewer conflicts | | Analytical approach | Deep, nuanced, transparent reports | | Customization | Flexible policy application | | Global coverage | Strong non-North America analysis | | User experience | Intuitive voting platform | | Reputation | Favored by certain public funds | | ESG strength | Robust ESG integration | **Final Thoughts:** The choice may come down to organizational priorities: independence vs. breadth of services, depth of analysis vs. speed, customization vs. standardization, etc. Some investors use both Glass Lewis and ISS in tandem to balance their methodologies. Ultimately, Glass Lewis may be chosen over ISS by investors who value independence, custom policies, and nuanced global analysis.