DOJ Rescinds Proxy Advisor Guidance After Trump Antitrust Request

The United States Department of Justice plans to withdraw a 1987 guidance letter that previously stated the business model of shareholder proxy advisors did not raise antitrust concerns. This policy reversal follows a request from President Donald Trump for an antitrust investigation into Institutional Shareholder Services and Glass Lewis, two firms that advise large institutional investors on corporate governance and elections.

The decision coincides with pressure from Republican political leaders and conservative groups. These critics argue that proxy advisors exert excessive market influence and overly promote environmental, social, and governance (ESG) proposals. By rescinding the guidance, the department removes a long-standing protection that shielded the industry from antitrust scrutiny.