President Trump’s Proxy Firm Executive Order Will Protect Manufacturers and Main Street Investors
Washington, D.C. – Following the release of President Trump’s executive order to direct federal agencies to institute much-needed reforms to proxy advisory firms, National Association of Manufacturers President and CEO Jay Timmons released the following statement:
“Manufacturers thank President Trump for taking action to rein in proxy advisory firms and depoliticize shareholder proposals—protecting manufacturers and Main Street investors alike. With Institutional Shareholder Services and Glass Lewis controlling 97% of the proxy advice market, manufacturers have long argued that these firms wield outsized, harmful influence on businesses—threatening growth and endangering shareholder returns.
“By directing federal agencies to protect manufacturers and Main Street investors from this duopoly, the president’s EO will increase transparency, reduce errors, mitigate conflicts of interest and depoliticize the proxy process. Manufacturers have been calling for these reforms for years, and we look forward to engaging with the SEC, DOL and FTC as they work to rein in these firms’ outsized influence.”
Background:
Following years of NAM advocacy, the SEC finalized a rule during the first Trump administration to rein in proxy firms; the rule was rescinded in 2021 following the change in presidential administrations.
Earlier this year, the NAM submitted detailed recommendations to the SEC of policies that would depoliticize the shareholder proposal process and provide meaningful oversight of proxy advisory firms. In November, the NAM released a new five-pager detailing specific steps Congress and the SEC should take to reform proxy firms and depoliticize corporate shareholder proposals.
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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.