Institutional Shareholder Services (ISS) and Glass Lewis recently released their updated U.S. voting guidelines, which take effect for annual meetings on or after Jan. 1,2022 (Glass Lewis) and annual meetings on or after Feb. 1, 2022 (ISS). The proxy advisors also announced several updates that will be implemented in 2023 following a one-year transition period.
The most pronounced changes will hold boards accountable for board diversity, climate change risk and unequal shareholder voting rights. The proxy advisors have also codified their approach to several new issues that emerged in 2021: racial equity audits and say-on-climate (SOC)votes.
The proxy advisors’ key policy revisions are discussed in more detail in the newsletter which can be downloaded at the link below: