President Donald J. Trump has issued an executive order directing increased oversight of foreign-owned proxy advisory firms that influence shareholder voting in major U.S. companies. The order highlights Institutional Shareholder Services Inc. and Glass, Lewis & Co., LLC, which together control more than 90 percent of the proxy advisor market and advise clients on voting shares held in mutual funds and exchange traded funds.
The administration states that these firms have significant sway over issues such as corporate governance, board composition, executive compensation, and other matters impacting capital markets and the value of Americans’ investments. According to the order, “These proxy advisors regularly use their substantial power to advance and prioritize radical politically-motivated agendas — like ‘diversity, equity, and inclusion’ and ‘environmental, social, and governance’ — even though investor returns should be the only priority.” The order continues: “For example, these proxy advisors have supported shareholder proposals requiring American companies to conduct racial equity audits and significantly reduce greenhouse gas emissions, and one continues to provide guidance based on the racial or ethnic diversity of corporate boards.”
The order instructs the Chairman of the Securities and Exchange Commission (SEC) to review all relevant rules and consider changes or rescissions if they are inconsistent with the order’s purpose. It also calls for increased transparency regarding recommendations related to diversity initiatives or environmental policies.
In addition, it directs the Federal Trade Commission (FTC), in consultation with the Attorney General, to examine ongoing state antitrust investigations into proxy advisors for potential violations of federal law. The FTC is tasked with investigating whether these firms engage in unfair competition or deceptive practices that could harm U.S. consumers by reducing investment values or failing to disclose conflicts of interest.
The Secretary of Labor is also directed to revise regulations under the Employee Retirement Income Security Act (ERISA) regarding fiduciary standards for those managing pension plan assets or advising on such management—including proxy advisors—to ensure they act solely in participants’ financial interests.
“This order shall be implemented consistent with applicable law and subject to the availability of appropriations,” according to its general provisions.
The costs associated with publishing this order will be covered by the Department of Labor.
DONALD J. TRUMP
THE WHITE HOUSE,
December 11, 2025.
