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White House Weighs Order to Curb Proxy Advisors as FTC Launches Antitrust Inquiry

The effort targets the sway of shareholder voting advisers over ESG and pay decisions, with foreign ownership and passive-fund mechanics drawing added scrutiny.

Overview

  • The Wall Street Journal reported the administration is considering an executive order that could sharply restrict or even prohibit recommendations by ISS and Glass Lewis.
  • Forbes, citing the Journal, says the FTC has opened an antitrust investigation focused on how the firms guided clients on ESG-related shareholder proposals.
  • Semafor reports officials are evaluating “mirror voting” for large passive investors such as BlackRock and Vanguard to limit their collective influence.
  • Semafor also reports CFIUS may review the firms because ISS is owned by Germany’s Deutsche Börse and Glass Lewis by a Canadian private‑equity firm.
  • No executive order or enforcement action has been finalized, and the reviews remain in progress as policymakers assess the firms’ impact on shareholder outcomes.