Trump Orders Review of ISS and Glass Lewis, Delivering a Major Win for Elon Musk

President Donald Trump on Thursday directed federal regulators to review the practices of Institutional Shareholder Services (ISS) and Glass Lewis — two of the most influential proxy advisory firms in the world — marking a significant victory for Tesla CEO Elon Musk, who has frequently criticized the companies for their voting recommendations.

The executive order tasks the Securities and Exchange Commission with scrutinizing how the firms evaluate corporate policies, particularly their use of diversity, equity and inclusion (DEI) criteria and environmental, social and governance (ESG) factors. The administration argues these elements promote political agendas rather than shareholder interests, a sentiment echoed by many conservatives and several corporate leaders.

Musk has clashed with ISS and Glass Lewis over past recommendations urging Tesla shareholders to vote against proposals favorable to him, including a substantial pay package. Beyond Musk, prominent business figures such as JPMorgan Chase CEO Jamie Dimon have questioned the influence proxy advisors hold over major investment decisions. Dimon previously referred to such firms as “incompetent,” arguing they exert disproportionate control over corporate governance.

Proxy advisory firms play a pivotal role for massive institutional investors — from pension funds to asset managers — who rely on their research to navigate thousands of shareholder votes each year. Their guidance can shape outcomes on everything from executive compensation and board structure to mergers, acquisitions and climate-related strategies.

The executive order underscores the growing political and financial pressure facing the proxy advisory industry. Florida Attorney General James Uthmeier has filed antitrust lawsuits against ISS and Glass Lewis, and the order also directs the Federal Trade Commission to examine whether the firms may be violating antitrust laws.

Both companies responded cautiously, with ISS stating it remains committed to operating independently and ethically, while Glass Lewis said it welcomes clarity on expectations from regulators.

Legal experts say the order does not immediately alter how proxy advisors operate but signals a potential shift of power back toward corporate boards and executives. It also aligns with broader actions taken within the Trump administration to roll back DEI and ESG frameworks across Corporate America.

Analysts caution that it may take months — or longer — to determine whether the move results in lasting structural changes. Still, the decision represents a meaningful early win for Musk and his allies, who have long argued that proxy advisory firms wield too much authority in shaping corporate outcomes.

Credit: CNN Newsource
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