By Ross Kerber
(Reuters) – U.S. proxy adviser Glass Lewis told clients on Wednesday it is reviewing its stance on diversity, equity and inclusion policies, which could further erode support for such measures in the spring shareholder meeting season.
In a note to clients seen by Reuters, Glass Lewis Chief Operating Officer John Wieck cited recent actions by President Donald Trump’s Justice Department aimed at ending DEI programs by private companies.
“While we firmly believe that diversity contributes to improved company performance and long-term shareholder value, given the uncompromising, hardline position of the current U.S. Administration, we may in fact determine that it is in our clients’ best interest for Glass Lewis to change its approach” in its recommendations on board elections and shareholder proposals at U.S. companies, Wieck wrote.
It will advise clients of any modifications by March 3, he added. Glass Lewis’ current guidelines generally recommend that shareholders vote against certain directors at some of the largest U.S. companies whose boards lack gender, racial or LGBTQ diversity.
Glass Lewis is not moving away from DEI as quickly as rival proxy adviser ISS, which said on Feb. 11 it will no longer consider the gender, racial or ethnic diversity of U.S. company boards when making its voting recommendations.
Trump and his allies say DEI unfairly discriminates against other Americans, including white people and men, and weakens the importance of merit in job hiring or promotion. DEI supporters say it helps ensure fairer representation for historically marginalized groups.
(Reporting by Ross Kerber. Editing by Dawn Kopecki and Rosalba O’Brien)