Overview
- The Executive Order directs the SEC to enforce anti-fraud rules on proxy voting recommendations, weigh registration of proxy advisors as investment advisers, require greater transparency, revisit Rule 14a-8, and examine potential investor coordination under Sections 13(d) and 13(g).
- The FTC, in consultation with the Attorney General, is instructed to review ongoing state antitrust probes and investigate whether proxy advisors engage in unfair, deceptive, or anticompetitive practices.
- The Labor Department must reassess ERISA fiduciary standards, consider treating proxy advisors as investment‑advice fiduciaries for retirement plans, and increase transparency around the use of DEI and ESG factors.
- The White House identifies ISS and Glass Lewis as foreign‑owned firms controlling over 90% of the market and argues their recommendations often prioritize DEI and ESG agendas over investor returns.
- Reuters notes prior Republican efforts to curb proxy advisors met mixed results in court and drew pushback from asset managers, as critics including Jamie Dimon and Elon Musk contend the firms wield outsized influence.