WH reportedly considering curbing influence of proxy advisers, index funds on shareholder voting

Regulatory Landscape & Potential Reforms - The Trump administration is considering rule changes that could significantly impact shareholder voting, specifically targeting proxy advisory firms like Institutional Shareholder Services (ISS) and Glass Lewis [1][2][3] - Proposed reforms may include banning shareholder recommendations or blocking recommendations on companies that have paid proxy advisory firms for consulting work [3] - The White House has not officially confirmed these discussions, stating that discussions about potential executive orders are speculation until officially announced [3] Industry Response & Debate - Corporate America has been critical of proxy advisory firms, with the Business Roundtable releasing a white paper in April advocating for proxy process reforms, including prohibiting robo voting [4][5] - Prominent figures like JP Morgan's Jaime Diamond and Elon Musk have expressed strong criticism of these firms, with Diamond calling them "incompetent" and Musk labeling them "corporate terrorists" [5] - Empirical research on the value provided by proxy advisory firms is inconclusive, with studies showing both positive and negative impacts on shareholder value [7][8] Proxy Advisory Firms' Perspective & Function - Glass Lewis believes that addressing concerns about proxy advisory firms is more effectively handled through constructive engagement of a regulatory process [4] - ISS is committed to fulfilling its fiduciary duties to clients and operating in a transparent and ethical manner [4] - Proxy advisory firms provide research and recommendations on corporate governance matters, such as director nominations and executive compensation, assisting shareholders in fulfilling their fiduciary duty in voting [2][9]