The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Sun, 05 Apr 2026 11:30:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png President Trump’s Executive Order on Proxy Advisors: The Potential Pros and Cons for Companies – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 President Trump’s Executive Order on Proxy Advisors: The Potential Pros and Cons for Companies https://corpgov.law.harvard.edu/2026/01/22/president-trumps-executive-order-on-proxy-advisors-the-potential-pros-and-cons-for-companies/?utm_source=rss&utm_medium=rss&utm_campaign=president-trumps-executive-order-on-proxy-advisors-the-potential-pros-and-cons-for-companies https://corpgov.law.harvard.edu/2026/01/22/president-trumps-executive-order-on-proxy-advisors-the-potential-pros-and-cons-for-companies/#respond Thu, 22 Jan 2026 12:30:46 +0000 https://corpgov.law.harvard.edu/?p=178608?d=20260121151603EST Posted by Martha Carter and Sydney Carlock, Teneo, on Thursday, January 22, 2026
Editor's Note:

Martha Carter is the Vice Chairman & Head of Governance and Sustainability, and Sydney Carlock is a Managing Director at Teneo. This post is based on a Teneo report by Ms. Carter, Ms. Carlock, Matt Filosa, Sean Quinn, Faten Alqaseer, and Diana Lee.

On December 11, 2025, President Trump signed an executive order aimed at reducing the influence of proxy advisors (specifically ISS and Glass Lewis) by directing the SEC, FTC and Department of Labor to conduct sweeping reviews of the rules governing the industry.

The administration argues that proxy advisor policies, particularly those related to ESG and DE&I issues (left undefined in the order), advance non-financial goals that conflict with investor fiduciary duties. The order builds on a series of federal and state actions intended to curb the influence of proxy advisors and large asset managers, dismantle stakeholder capitalism and reinforce that “ESG” issues are not financially material. These actions include revised SEC 13G/D guidance, congressional hearings, the SEC’s withdrawal from the shareholder-proposal no-action process, scrutiny from several state attorneys general and Texas SB 2337.

Proxy advisors have already begun to respond to pressure, with ISS introducing a recommendation-free research option for its investor clients and Glass Lewis planning to eliminate its house policy beginning in 2027. Even so, the executive order could spur far more significant changes; its scope and multi-agency approach make it one of the strongest challenges to proxy advisors to date. The order sets no timeline, and legal challenges are likely. While some impact may be felt in the upcoming proxy season, the most significant effects will likely unfold over a longer horizon. Below, we offer our analysis of the executive order, including pros and cons for corporations as they navigate the 2026 proxy season and beyond.

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