According to this WSJ article, the Trump administration is considering an executive order targeting proxy advisors like ISS and Glass Lewis. The proposed executive order parameters might include:
- A broad ban on shareholder voting recommendations, or
- A more limited prohibition on issuing recommendations for companies that also use the firm’s consulting services.
Officials are also exploring ways to limit how index-fund managers vote, with one idea requiring fund managers to mirror client votes for those investors who choose to exercise voting rights. Discussions are ongoing and fluid, with multiple drafts of the executive order circulating. Meanwhile, Bloomberg’s Matt Levine’s latest column delves into the proxy advisory world including this potential executive order.
And this WSJ article notes that the Federal Trade Commission is investigating whether ISS and Glass Lewis violated antitrust laws through their business of guiding shareholder votes. Florida has investigated these proxy advisors for antitrust violations involving ESG and DEI as far back as March – and the Texas attorney general has targeted them too with a preliminary injunction being issued in favor of the proxy advisors ahead of a February 2nd trial…
Authored by
Broc Romanek