Trump orders review of proxy advisory firms over ESG and DEI concerns
President Donald Trump has ordered a review of two leading proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis. The move directs key U.S. agencies to examine whether these firms prioritise environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) policies over financial returns for investors. Both companies dominate the market, controlling over 90% of proxy advisory services in the U.S.
The executive order targets ISS, owned by Germany’s Deutsche Börse, and Glass Lewis, under Canadian firm Peloton Capital. These firms advise major investors on how to vote in corporate decisions, shaping governance across industries. Trump’s administration claims their influence may push political agendas rather than maximise shareholder profits.
The investigation will assess whether ISS and Glass Lewis use their market dominance to advance non-financial priorities. The findings could impact how proxy advisory firms operate in the U.S. and influence future corporate voting practices. No timeline for the review’s completion has been announced.
