Paul Atkins Says SEC Will Review Proxy Advisory Firms, Shareholder Guidance: Report

In an interview with Fox Business, the SEC Chair stated that the agency will release proposals and clarifications.

Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), said on Friday that the agency is considering reforms for proxy advisory firms, which guide shareholders on corporate votes. 

“We’ll be looking at this entire area and come out with proposals and clarifications,” Atkins told Fox Business. His remarks come amid rising scrutiny of the industry, which includes major firms like Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co.

Federal Trade Commission Probes Antitrust Concerns

Earlier this week, the Federal Trade Commission reportedly opened an investigation into ISS and Glass Lewis to determine whether their guidance on politically sensitive shareholder votes violated U.S. antitrust laws. The probe is in its early stages, according to Bloomberg.

The Wall Street Journal has also reported that the White House is exploring new measures to limit the influence of proxy advisers and index-fund managers. These potential steps address concerns raised by high-profile executives, including Elon Musk and Jamie Dimon, about conflicts of interest and market power in shareholder voting.

Officials are reportedly considering an executive order that could limit or ban shareholder recommendations from proxy-advisory firms, particularly where those firms have provided consulting services to the companies involved.

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