Proxy advisory firms such as Institutional Shareholder Services (ISS) and Glass, Lewis & Co. (Glass Lewis) provide an array of services related to corporate governance and proxy voting to public company shareholders. Specifically, guidance from proxy advisory firms often influences the voting practices of large institutional investors such as public pension funds, mutual funds and large endowments. Because of the strong influence proxy advisory firms have over the voting practices of institutional investors, public companies should carefully monitor changes in proxy advisory firms’ voting policies and guidelines.

ISS and Glass Lewis recently issued new proxy voting guidelines for the 2016 proxy season. Notable updates were issued relating to...