The White House is exploring new measures to curb the influence of proxy advisers and index-fund managers, according to a report from The Wall Street Journal (WSJ).
Trump administration officials are reportedly discussing at least one executive order that would restrict firms such as Institutional Shareholder Services (ISS) and Glass Lewis.
The potential measures could include a broad ban on shareholder recommendations or directives blocking guidance on companies that have engaged proxy advisers for consulting work, per the WSJ report.
Officials are also examining limits on how index-fund managers, such as BlackRock, Vanguard, and State Street, can vote, with one proposal requiring these managers to align their votes with clients who choose to vote directly.
Together, these firms hold roughly 30% or more of many of the largest publicly traded US companies.
The discussions, ongoing for several weeks, remain fluid, and multiple drafts of the proposed executive order are reportedly circulating.
Any action would add to scrutiny on ISS and Glass Lewis, which have recently faced criticism from Tesla CEO Elon Musk and JPMorgan CEO Jamie Dimon over conflicts of interest and influence on shareholder votes. ISS and Glass Lewis advise asset managers on issues ranging from executive compensation to environmental goals.
Musk publicly criticized the firms after they recommended a “no” vote on his $1 trillion Tesla pay package, which shareholders ultimately approved.
A White House official told the WSJ: “Until officially announced by the White House, discussion about potential executive orders is speculation.”