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President Trump signed an executive order yesterday directing federal agencies to increase oversight of proxy firms—powerful, largely unrelated entities that influence manufacturers’ corporate governance decisions (Reuters).

What’s going on: “Trump directed the U.S. Securities and Exchange Commission and other agencies to review if top proxy advisers Institutional Shareholder Services and Glass Lewis had violated rules or antitrust law ….”

• “The order also directs the agencies, including [the SEC], the Federal Trade Commission and the Labor Department, to consider steps such as new regulations.”

The NAM says: “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,” President and CEO Jay Timmons said in a statement.

• “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.”

NAM in action: Earlier this year, the NAM submitted  detailed recommendations to the SEC for 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.

The White House responds: The White House’s rapid response account on X shared the NAM’s statement.