Glass Lewis Updates Pay-for-Performance Methodology

In response to investor demand for clear and consistent pay-for-performance analysis as executive compensation plans become increasingly complex, Glass Lewis recently announced a new pay-for-performance methodology (here). To provide greater transparency and more meaningful and predictable analysis in its reports, Glass Lewis will now provide a quantitative score based on five key tests and a qualitative assessment. The new methodology and scoring will be applicable starting January 1, 2026. The Glass Lewis announcement comes shortly after the launch of its annual benchmark policy survey (as discussed in our prior Alert here).

Five Tests Provide Framework for New Pay-for-Performance Scorecard