Rep. Ronny Jackson Sends Letter To FTC & Acting AG Blanche Seeking Information
According to a Press Release issued Friday, Representative Ronny Jackson (TX-13) sent a letter to Chairman Ferguson of the Federal Trade Commission (FTC) and Acting Attorney General Blanche of the Department of Justice (DOJ) requesting information on their continued investigations into politically-motivated proxy advisor firms.
The following is taken directly from the Press Release:
The letter comes following President Trump’s signing of Executive Order (EO) 14366 “Protecting American Investors from Foreign-Owned and Politically-Motivated Proxy Advisors.” EO 14366 raises concerns about foreign-owned proxy advisor firms, Institutional Shareholder Services (ISS) and Glass, Lewis & Co., LLC (Glass Lewis), collectively controlling approximately 90 percent of the proxy advisor industry, wielding enormous influence over America’s largest companies. Furthermore, the EO highlights that these firms have used their influence to encourage shareholder votes advancing environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) initiatives that do not prioritize shareholder value or financial returns.
ISS and Glass Lewis have also challenged Texas Senate Bill 2337, which requires proxy advisory firms to publicly disclose when their voting recommendations for Texas companies are based on non-financial factors, including ESG and DEI. Additionally, both firms have opposed eight individual Texas corporate redomicile proposals that recently came before shareholders, raising concerns about coordinated anticompetitive activities between the businesses to block corporations moves to the state.
“For too long, a small number of foreign-owned proxy advisor firms have exercised outsized influence over U.S. businesses, pushing radical ESG and DEI agendas to the detriment of American consumers and the Texas economy,” said Rep. Jackson. “I’m proud to support President Trump and his administration’s efforts to investigate these politically-motivated firms for unfair, deceptive, and anticompetitive practices. I look forward to working with my colleagues to provide greater transparency and accountability into the industry and ensure everyday investors can have confidence that proxy voting recommendations are made in the best financial interests of shareholders.
The letter may be found here.