It’s true that proxy advisors are under pressure from all quarters. And that ISS and Glass Lewis are both changing their business models. But that doesn’t mean that they no longer have influence on the proxy season. This blog from Liz Dunshee cites this Teneo memo, particularly these passages:
“When ISS recommended against management, investor opposition often matched or exceeded prior levels, especially in categories where ISS issued fewer adverse recommendations overall. Therefore, companies still need to pay close attention to ISS policies and potential recommendations as they prepare for Fall investor engagement and the 2027 proxy season.”
The memo dives into 2026 voting results at S&P 500 meetings on say-on-pay, E&S shareholder proposals, governance shareholder proposals, and uncontested director elections. The Teneo team offers these parting thoughts:
“The 2026 proxy season showed that the impact of ISS guidance on vote results often grew year over year rather than shrank. Where ISS was more selective in recommending against management (e.g., say-on-pay and environmental and social proposals), shareholder opposition increased from 2025. Governance proposals and uncontested director elections were the exception, with narrower vote differentials amid a higher rate of adverse recommendations.
The results indicate that ISS’ influence has not waned. While some investors are not swayed by ISS alone, its recommendations certainly carry some weight. And while ISS had lower adverse recommendation rates for certain proposal types, those recommendations more closely reflected investor priorities. ISS reports also signal issues likely to draw scrutiny from investors that do not strictly follow its policies.
As ISS views become more aligned with prevailing investor viewpoints, they become harder for companies to refute. Companies still need to pay close attention to ISS policies and potential recommendations as they prepare for Fall investor engagement and the 2027 proxy season.”
