President Trump issued an executive order seeking to limit the influence of proxy advisory firms, part of a push to curtail how third-party firms attempt to sway the direction of public companies https://t.co/ANLjKzo0dz ...

Proxy Advisory Firms & Index Fund Managers - The Trump administration is reportedly considering steps to reduce the influence of proxy advisory firms like ES and Glass Lewis, and index fund managers including Vanguard and Blackrock [2] - One option under consideration is a broad ban on shareholder recommendations from proxy firms [2] - Another option is targeting recommendations on companies that have hired proxy firms for consulting work, addressing potential conflicts of interest [2][3][4][16] - The administration is also exploring forcing index fund managers to vote on proposals in accordance with their clients' votes [3] Shareholder Voting & Influence - The discussion revolves around who should have the power in corporate governance: management, proxy firms, or individual shareholders [7] - A key point is whether the default should be that index funds automatically vote on behalf of shareholders who don't actively vote, or whether it should require an "opt-in" [6][12][15][23] - Concerns are raised that most people don't vote, and defaulting to management or proxy firm recommendations could lead to unintended consequences [6][19][20] - Some argue that index fund managers may be pushing their own agendas (e.g, climate change) through shareholder votes [10] - The debate includes whether individuals should have the option to explicitly give their vote to the firm or not [12] 401(k) Plans & Investment Management - The discussion touches on how 401(k) plans are managed, particularly target date funds and S&P 500 funds [13][14][19] - A question is raised about whether individuals in these plans are given enough choice and control over how their shares are voted [15] - There's a sentiment that individuals should not blindly trust proxy advisors or default managers, and should have the option to opt-in to their voting recommendations [26]