A worthwhile read for awareness purposes, Glass Lewis's "COVID-19 The New Rules for ESG" is a cross between updated proxy voting guidelines (disregard the "ESG" labeling) and engagement and disclosure advice for companies looking to enhance their positioning with investors as they grapple with and emerge from the challenges associated with the pandemic.
Specific topics addressed include:
- Timely and quality disclosure
- Facilitating shareholder participation in virtual meetings
- Board risk oversight, diversity, succession, and adaptability to remote operating conditions
- Executive compensation planning and execution
- Capital management
- Shareholder activism
- Shareholder proposals
Interestingly, , among other things, the paper expressly promotes the conduct of board oversight remotely in lieu of traditional governance practices (e.g., in-person meetings) that may entail COVID-19-associated health and safety risks, but notes that investors expect companies to demonstrate that they can conduct their meeting and decision-making responsibilities effectively in the new virtual environment.
While some of the content reiterates themes expressed in Glass Lewis's March post (reported on here: see "Glass Lewis Will Consider Pandemic in its Proxy Advice: Here's How"), this paper is more forward-looking, i.e., post 2020 annual meeting with a view toward the 2021 proxy season.
Access additional resources on our Proxy Advisors page. This post first appeared in the weekly Society Alert!