Signing comes after weeks of rumor that the US administration would formalize scrutiny of the proxy vote advisory firms
‘Unbeknownst to many Americans, two foreign-owned proxy advisors, ISS and Glass Lewis, play a significant role in shaping the policies and priorities of America’s largest companies through the shareholder voting process,’ wrote US President Donald Trump on Thursday as – after weeks of rumor – he signed an executive order targeting the two firms. In it, Trump advises everyone from the SEC to the Federal Trade Commission, the Attorney General, the Secretary of Labor to put a regulatory spotlight on the big two.
The rhetoric leading up to the signing was fierce: SEC chairman Paul Atkins talked about the ‘weaponization of shareholder proposals,’ while Elon Musk famously described ISS and Glass Lewis as ‘corporate terrorists’.
However, each firm stresses its commitment to professional, ethical and independent standards and those in the governance world say a move to customization is already under way.
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