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Nichol Garzon-Mitchell: Glass Lewis and the Proxy Advisory Landscape.
Episode 29
Published 5 years, 3 months ago
Description
- Intro.
- (1:16) - Start of interview
- (2:04) - Nichol's "origin story"
- (3:48) - Her beginnings with Glass Lewis & Co. in 2004.
- (4:32) - What is the proxy advisory business? What was the origin of Glass Lewis? Founded by Greg Taxin and Kevin Cameron in 2003.
- (7:17) - The evolution of the proxy advisory business. "Now we've become more of a trusted partner to institutional investors to navigate all [the corporate governance] issues."
- (7:51) - The proxy voting management platform "Viewpoint".
- (9:51) - Proxy research at Glass Lewis: 28,000 research reports on public companies in 100 global markets.
- (14:06) - Proxy advisory landscape in the U.S. and internationally. The Best Practice Principles Group (2013).
- (16:21) - The evolution of engagement with issuers ("Glass Lewis has about 1,500 engagements per year with issuers, across 40 countries in 20+ languages"). There are free and paid engagements.
- (22:00) - The regulatory landscape of proxy advisors. Heightened focus in last 5 years, and new regulations were passed in 2020 from the SEC and DoL.
- (29:32) - Current ownership of Glass Lewis: Ontario Teachers Pension Fund (80%) and Alberta Investment Management Corporation (20%).
- (32:14) - How they set their corporate governance principles and policy guidelines. They follow what matters to institutional investors (their clients). They also have a research advisory council from industry (that meets once a year). They look at regulations in different markets.
- (35:08) - Glass Lewis boardroom diversity efforts: starting in this proxy season they will be rating the level of disclosure on boardroom diversity.
- (38:15) - On corporate purpose. Stakeholder capitalism.
- (39:46) - On ESG and sustainability activism. "People [and institutional investors] are more aware."
- (41:17) - On shareholder activism.
- (43:25) - Her recommendations to US public company directors:
- Be engaged.
- Know your shareholder base.
- Have a plan.
- In terms of proxy advisors: stop viewing them as a threat. She encourages directors to engage with Glass Lewis, in its capacity as a trusted advisor to institutional investors. "Use us as a way to connect with investors."
- (45:00) - Prediction on regulatory changes with new incoming Administration in the US, Canada, India, EU, etc.
- (46:30) - Her favorite books:
- Distant Neighbors, by Alan Riding (1984)
- Give and Take, by Adam Grant (2013)
- (48:00) - Her mentors:
- Jorge Robles (Lawyer in Mexico)
- KT Rabin (ex CEO of Glass Lewi