Core Viewpoint - JPMorgan Asset Management has severed ties with proxy advisory firms ISS and Glass Lewis, opting to use its own AI-driven voting platform, Proxy IQ, marking a significant shift in shareholder power dynamics [1][3]. Group 1: JPMorgan's Strategic Move - JPMorgan Asset Management manages over $7 trillion in client assets and is the first major asset manager to rely solely on an internal voting platform [1]. - CEO Jamie Dimon has criticized proxy advisers as "incompetent" and has declared their dominance as "done with," indicating a challenge to the existing proxy advisory system [2][3]. - The decision to replace external advisers with an internal platform allows JPMorgan to control the shareholder voting process, which it previously condemned [4]. Group 2: Political and Regulatory Context - The move follows an executive order from President Trump, which directs federal agencies to investigate proxy advisers due to concerns over their influence being driven by political agendas rather than fiduciary duties [2]. - This combination of political and financial pressure from both Trump and JPMorgan represents a significant challenge to the proxy advisory industry [2]. Group 3: Broader Industry Implications - The shift towards a more decentralized and digitally engaged electorate is part of a broader trend toward democratization in investing, allowing individual investors to have real-time access to voting [4]. - The upcoming proxy season may see individual investors playing a more significant role, potentially overshadowing traditional activist campaigns and institutional influences [5]. - Other companies, like ExxonMobil, are also adapting to elevate individual investors, reflecting a growing trend in the industry [6].