What Glass Lewis Overhaul of PFP Model Portends | Farient Briefings
September 12, 2025
What Glass Lewis Overhaul of PFP Model Portends
Farient Advisors’ in-depth analysis of the significant changes to Glass Lewis’ Pay for Performance (PFP) model highlights critical questions and offers strategic recommendations for companies and their boards as they gear up for the 2026 proxy season.
Changes to the proxy advisor’s Pay for Performance (P4P) model will influence Say on Pay (SOP) voting recommendations starting in 2026. The revamped model, outlined in a recent client memo by Glass Lewis, transitions from the current A to F letter grade system to a more nuanced 0 to 100 numerical score, where lower scores signify greater concern.
Notably, a “Severe” concern will not automatically trigger an “against” SOP recommendation, as Glass Lewis will continue to perform a qualitative review to evaluate mitigating factors.
In the News
CHROs Stay Put Longer as They Increasingly Become Strategic Assets—Agenda
CEOs are increasingly treating CHROs as strategic partners—bringing them to the table on succession planning, talent pipeline development, and long-horizon business issues, the article reports. With this expanded role, CHROs are not only staying longer but also becoming indispensable to the success and resilience of the enterprise.
“We are entering an era where there will be a lot of focus on human capital and talent, and that raises the prominence and the relative position of the CHRO versus their other brethren,” said R.J. Bannister, partner and COO at Farient Advisors. Bannister added that the impact of AI on the workplace is one of the top issues shaping the CHRO agenda today.
Read more
Thinking About Trimming PSUs from Your CEO’s Pay? Not So Fast—Agenda
Performance share units (PSUs) are under renewed scrutiny, with critics questioning whether boards set goals that are too easy to achieve. Still, new research suggests most investors aren’t ready to abandon them. A survey of more than 100 large investors found that 71% favor continuing to use PSUs, and 86% want them to comprise at least half of long-term incentive awards.
In Agenda, Farient Advisors Partner Marc Hodak highlights that while concerns about pay-for-performance misalignment are valid, boards face significant challenges if they consider moving away from PSUs. “Our research shows that, on average, companies using PSUs have underperformed and paid more than those that don’t,” Hodak said. “Yet, investors still overwhelmingly support them, provided companies are transparent about how goals are set.”
Read moreWhere to Find Us
NACD Leading Minds of Governance & Technology
Ask-the-Expert Panel on Compensation and Governance
Farient Partner and COO R.J. Bannister joins an Ask-the-Expert panel with EY’s Robyn Bew and others to share their outlooks on digital oversight, board governance, and aligning compensation strategies with talent. This session is part of NACD’s daylong program that also includes lunch and a Q&A with Boston Consulting Group Global Chair Rich Lesser on the board-CEO dynamic.
The Westin at Boston’s Seaport
September 17, 2025
8:00 a.m.-3:00 p.m.
The 350 Club
London Breakfast
Farient Partner Stephen Cahill will lead an overview of the 2025 AGM season at London’s 350 Club, the esteemed community for FTSE 350 board members and FTSE 100 senior leaders.
Egon Zehnder offices
Nova South
160 Victoria Street
London SW1
September 17, 2025
8:30 a.m.-10:00 a.m.
Directors & Boards
The Intersection of Compensation and Talent (Virtual)
Perspectives on talent strategy, leadership succession, and trends shaping executive compensation are the focus of a webinar with Robin A. Ferracone, founder and CEO of Farient Advisors, and Lakecia Gunter, who serves on the board of IDEX Corp., hosted by Directors & Boards Editor Bill Hayes and Publishing Director David Shaw. This webinar is a must for forward-thinking directors seeking to stay ahead on compensation practices.
September 25, 2025
2:00 p.m. EST | 11:00 a.m. PST
Strengthening C-Suite Succession Planning
How can boards best prepare to mitigate leadership risks and secure mission-critical talent? Proactive strategies will be presented by Farient Principal Tracy Wittman, KPMG Senior Advisor Annalisa Barrett, and public company board director Colleen B. Brown during this Summit session on October 14, 2025 at 10:45 a.m.
National Harbor, Maryland
October 12-15, 2025
Understanding Climate Incentives
Exclusive: Around the globe, the heat is on to combat climate change while some political regimes denounce the veracity between greenhouse gas emissions and a warming planet. Nevertheless, large corporations are reporting Scope 1, Scope 2, and, increasingly, Scope 3 greenhouse gas emissions and linking reductions to executive compensation, according to Farient Advisors’ newly published 2025 Global Trends in Stakeholder Incentives: Climate Strategies and Incentives for Corporate Sustainability.
Learn more about how the world’s largest companies are setting and achieving climate goals by linking climate measures to executive incentives by sector and geography.
About Farient Advisors
Farient Advisors LLC is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services, linking business strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, New York, and London and works with clients globally through its partnership in the Global Governance and Executive Compensation (GECN) Group. Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.
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