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A War on top Investor advisers Is Growing
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Washington D.C. – The Trump administration is reportedly investigating Institutional Shareholder Services (ISS) and Glass Lewis, two of the most influential shareholder advisory firms. This move, first reported November 13, 2025, signals a potentially notable shift in how corporate America operates and raises questions about the independence of investor advice. The investigation centers on potential conflicts of interest and whether the firms’ recommendations unduly influence corporate decision-making.
ISS and glass Lewis wield considerable power. Their recommendations on how investors should vote on issues like executive pay and board elections often determine outcomes. These firms have become gatekeepers of corporate governance,
noted a source familiar with the investigation. The administration’s scrutiny follows increasing criticism from corporations who argue the firms’ policies are short-sighted and hinder long-term growth.
Did You Know? …
ISS and Glass Lewis collectively advise on trillions of dollars in assets under management, making their recommendations highly impactful.
Timeline of Events
| date | Event |
|---|---|
| 2025-06-10 | Corporate leaders begin publicly criticizing ISS & glass Lewis. |
| 2025-08-22 | white House signals review of shareholder advisory firms. |
| 2025-11-13 | Investigation into ISS & Glass Lewis officially reported. |
| 2025-11-15 | ISS & Glass Lewis issue statements defending their practices. |
Key Concerns & Arguments
Corporations contend that ISS and Glass Lewis prioritize short-term gains over lasting value creation. Thay also allege that the firms’ methodologies are opaque and lack sufficient consideration for company-specific circumstances. Critics point to instances where the firms have recommended against executive compensation plans even when companies have demonstrated strong performance. Conversely, proponents of ISS and Glass Lewis argue that they provide crucial independent oversight, holding corporations accountable and protecting shareholder interests.
Pro Tip: …
Understanding the role of shareholder advisory firms is crucial for investors seeking to make informed decisions about their portfolios.
“The independence of these firms is paramount to ensuring a fair and clear market.” – Securities and Exchange Commission report on proxy advisory services (2019) [Universally recognized source].
Potential Implications
The investigation could lead to increased regulation of shareholder advisory firms, potentially requiring greater transparency in their methodologies and a more robust process for addressing conflicts of interest. Some analysts predict that the administration may seek to limit the influence of ISS and Glass Lewis, giving corporations more control over their own governance. this could fundamentally alter the balance of power between companies and their shareholders.
The outcome of this investigation will likely have far-reaching consequences for corporate governance and investor activism. It represents a broader trend of challenging established norms in the financial industry and underscores the ongoing debate over the role of regulation in a rapidly evolving market.
shareholder activism has grown significantly in recent decades, driven by increased institutional investment and a greater focus on environmental, social, and governance (ESG) factors. Firms like ISS and Glass Lewis have played a key role in facilitating this trend by providing investors with the research and recommendations they need to effectively engage with companies. The current investigation reflects a backlash against this growing influence, as some argue that it has gone too far and is hindering economic growth.
Frequently Asked Questions
- What is ISS? Institutional Shareholder Services is a proxy advisory firm that provides voting recommendations to institutional investors.
- What is Glass Lewis? Glass Lewis is another leading proxy advisory firm offering similar services to ISS.
- Why are these firms being investigated? Concerns center on potential conflicts of interest and undue influence on corporate decisions.
- What could happen if the investigation finds wrongdoing? Increased
