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JP Morgan CEO argues against proxy advisors (2025)
| Environmental, social, and corporate governance |
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
Jamie Dimon, the CEO of JP Morgan Chase—the largest bank in the world by market capitalization—spoke against Institutional Shareholder Services (ISS) and Glass Lewis (the two largest proxy advisory services) last week. Dimon argued they were ineffective, used inaccurate data, and had conflicts of interest.
Dimon’s opposition to the proxy advisory firms may reflect division among ESG supporters.
According to The Wall Street Journal:
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Glass Lewis and ISS provide recommendations to asset managers on how to vote their shares on proxy ballots. Pension funds, college endowments, foundations and mutual fund providers outsource their voting to the two firms, which make up 90% of the proxy advisory market. But the firms have conflicts of interest and don’t do adequate due diligence. 'They are incompetent,' Mr. Dimon said at a BlackRock retirement summit. 'They are owned by the NGOs,' meaning non-governmental organizations. Their data is 'wrong,' he continued, yet 'they don’t have to correct them.' And companies 'can hire them' to improve their corporate governance ratings. 'Really? They should be gone and dead, done with,' Mr. Dimon said. … ISS last month announced that it would no longer include diversity in its voting recommendations for U.S. boards, saying 'we anticipate that institutional investors and U.S. companies will have a range of perspectives on DEI.' Yes, but ISS heretofore required companies to follow its 'cookie cutter'—to use Mr. Dimon’s term—DEI rules.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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