The Trump administration is considering an executive order that would reduce the influence of Institutional Shareholder Services (ISS) and Glass Lewis, the two largest proxy advisory firms in the United States, according to the Wall Street Journal. Officials are reviewing whether the firms exert too much control over how institutional investors vote on corporate matters. The effort focuses on concerns that ISS and Glass Lewis shape outcomes on contested shareholder votes and board elections rather than simply offering neutral research and recommendations.

Any limits on ISS and Glass Lewis could shift how major investors cast votes at shareholder meetings. Critics say the firms’ recommendations increase support for environmental, social, and governance (ESG) proposals in ways they view as harmful or inappropriate, while supporters argue the same recommendations strengthen ESG oversight and provide valuable analysis for investors. Reducing the firms’ influence could shift influence away from third-party recommendations and toward company leadership or large asset managers.

Republican House members have recently scrutinized proxy advisory firms. In May 2025, a House subcommittee held a hearing examining how proxy advisors influence shareholder voting and whether additional oversight is needed. These earlier actions highlighted ongoing questions about the role proxy advisors play in shaping corporate governance across public companies. Proxy voting allows shareholders to authorize others, such as asset managers or advisory firms, to vote on their behalf.

Republican state attorneys general have also stepped into the debate over the proxy-advisory industry. In March, Florida Attorney General James Uthmeier (R) launched an antitrust review citing concerns about the firms’ concentrated influence on investor voting decisions. In July 2025, Missouri Attorney General Andrew Bailey (R) opened an investigation into ISS and Glass Lewis, alleging the firms prioritized political agendas over fiduciary responsibilities. In October, Glass Lewis announced it would end benchmark voting recommendations and shift to customized guidance amid rising political scrutiny.

Ballotpedia tracks support for and opposition to the environmental, social, and corporate governance (ESG) investing movement. To learn more about arguments for, against, and about ESG, click here. For more information on reform proposals related to ESG policy, click here.