A group of Republican senators on the Banking Committee have expressed concerns over the influence of proxy advisors over the corporate governance of U.S. public companies.
Sens. Tim Scott (R-SC), Mike Rounds (R-SD), and Bill Hagerty (R-TN) sent letters to the leading proxy advisors, Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co., explaining their concerns.
Specifically, the Republicans cite what they view as the lack of transparency, accountability, and oversight facing the proxy advisor firms, which help shareholders better understand their shareholder votes. The senators are seeking information from the firms to better understand their foundations for recommendations, potential for conflicts of interest, and the processes used to develop and apply voting policies.
“We write to express our concerns with the expansive, opaque, and ideologically driven influence your firms exert over the corporate governance of U.S. public companies. Institutional Shareholder Services (ISS) and Glass, Lewis & Co. (Glass Lewis) hold a near-duopoly over proxy advisory services—and in doing so, have come to shape boardroom decisions, shareholder votes, and corporate strategy across the American economy, while influencing U.S. public policy on important economic, environmental and social issues. Yet you operate with virtually no transparency, minimal accountability, and no meaningful regulatory oversight,” the letter states.
The senators request responses to a series of questions by June 10, 2025.