By Ross Kerber and Christian Martinez
Dec 11 (Reuters) – U.S. President Donald Trump signed an order aimed at increasing oversight of the proxy advisory industry, the White House said on Thursday, saying top firms often “advance and prioritize radical politically-motivated agendas.”
In the order, posted on the White House website, Trump directed the U.S. Securities and Exchange Commission and other agencies to review if top proxy advisers Institutional Shareholder Services and Glass Lewis had violated rules or antitrust law.
The order marks the latest conservative attack on the companies, which advise institutional investors how to vote in corporate elections. Both have been targeted by Republican politicians, business groups and executives including JP Morgan CEO Jamie Dimon and billionaire Elon Musk who say they have too much influence over decisions such as director contests or whether to approve executive pay.
In November, Reuters and other outlets reported the White House was exploring new limits on the firms.
But past Republican attempts to restrict the companies’ business have met with mixed success amid court challenges and support from asset managers and investment groups. They say the firms simplify complex shareholder voting decisions.
Trade groups also once looked to the White House to restrict proxy voting by large funds. But those expectations have cooled and Trump’s order on Thursday made no mention of the issue.
(Reporting by Bhargav Archaya; Writing by Christian Martinez; Editing by Muralikumar Anantharaman and Chris Reese)
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