Glass Lewis Will Make Changes to Peer Groups and Pay-for-Performance Methodology

Published: August 2019


Glass Lewis announced it is replacing Equilar as its provider of pay data used to evaluate peer groups and pay-for-performance alignment. Changes go into effect at the start of the new year.

Glass Lewis recently announced that it will change its provider of peer group and pay-for-performance information from Equilar to CGLytics. Beginning January 1, 2020, Glass Lewis’ peer group construction will be performed by CGLytics, a governance data analytics firm based in Amsterdam. As a result, the makeup of each company’s peer group is expected to change.

It is not clear yet how this change will impact any individual company, but it is an important development for issuers to be aware of as it could impact how a company is evaluated by Glass Lewis for purposes of Say-on-Pay voting. 

More details about the new partnership can be found here.

As part of this transition, Glass Lewis says it is considering a series of changes to its pay-for-performance methodology, and in an apparent break from past practices, intends to engage with clients, companies and unspecified “other stakeholders” on proposed changes, including:

  • Scoring: Whether the A-F grades are the preferred way to communicate pay-for-performance outcomes
  • Peers: The most appropriate methodology for assessing investor peer groups
  • Metrics: The most appropriate metrics from both investor and company perspectives
  • Valuation: The most appropriate methodology for valuing incentives from an investor perspective

The Rewards Solutions team is actively monitoring the impact of this announcement and will provide updates as additional details emerge. To speak with a member of our rewards consulting group about this topic or other governance-related issues, please write to


Related Articles

General Disclaimer
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Terms of Use
The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.

Talk to an Expert

Let us know how we can help and a member of our team will be in touch shortly.

Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. All personal information is collected and used in accordance with our privacy statement.

If you do not wish to receive these communications, please check here: