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Trump Administration Considers Crackdown On Proxy Advisors After Elon Musk's Criticism of ISS, Glass Lewis: Report

Benzinga·11/12/2025 09:00:43
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President Donald Trump is reportedly considering regulations to limit the powers of proxy advisors like Institutional Shareholder Services (ISS) and Glass Lewis.

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A Possible Ban On Shareholder Recommendations

Officials from the Trump administration are exploring ways to limit the proxy advisors' influence on decisions via a possible executive order that could include a ban on shareholder recommendations by the firms, the Wall Street Journal reported on Tuesday.

The Trump Administration didn’t immediately respond to Benzinga‘s request for comment.

The order could also include limits on voting powers of index fund managers like BlackRock Inc. (NYSE:BLK), Vanguard, as well as State Street Corp (NYSE:STT), the report said, adding that another measure could require index funds to mirror the votes of their clients.

Elon Musk's Criticism Vindicated?

The news comes as Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk had criticized proxy advisors for recommending that Tesla shareholders vote against the CEO's trillion-dollar pay package, which was recently approved by investors during the EV giant's annual shareholder meeting.

Musk had also called the proxy advisors "corporate terrorists" during Tesla's third-quarter earnings call last month in the buildup to the shareholder vote on Musk's compensation award, among other decisions.

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