JPMorgan Chase’s asset management arm will no longer utilise proxy advisers in the United States, according to an internal memo. The bank described this decision as a first within the industry. JPMorgan Chase is a leading global financial services firm with assets of trillions of dollars and operations worldwide. Its asset management division offers investment management across all major asset classes.
For years, conservative voices and business leaders have criticised proxy advisers and major fund managers. Common complaints include recommendations against boardroom decisions or directors, and an overemphasis on climate and social issues. Proxy advisory firms analyse shareholder proposals and corporate governance matters, offering voting recommendations to institutional investors prior to annual shareholder meetings.
JPMorgan Chase indicated it no longer requires third-party data collection or voting recommendations within the U.S. The company will now depend on Proxy IQ, a newly introduced AI-powered in-house tool. This tool is designed to aggregate and analyse proprietary data gathered from over 3,000 annual company meetings. A spokesperson for ISS noted they will continue to serve the global institutional investor community with independent and high-quality governance research, recommendations, and voting solutions.
The move comes amid ongoing criticism from figures like former U.S. President Donald Trump and prominent corporate executives regarding the influence of proxy advisers’ recommendations. Their guidance remains widely used by institutional investors. JPMorgan’s shift reflects a growing debate over the role and impact of proxy advisory firms in corporate governance and shareholder voting.
