President Donald Trump signed a landmark executive order this week taking direct aim at foreign-controlled proxy advisory firms that have wielded outsized influence over American corporations, forcing woke environmental and diversity mandates on companies without the knowledge or consent of everyday shareholders.
The executive order represents one of the most significant actions yet in the Trump administration's ongoing war against the infiltration of radical leftist ideology into American business and finance.
Exposing the Shadow Power Brokers
For years, two major proxy advisory firms—Institutional Shareholder Services (ISS) and Glass Lewis—have operated largely in the shadows, controlling how trillions of dollars in American retirement savings and investments are voted during corporate shareholder meetings. What most Americans don't realize is that these powerful firms are owned by foreign entities, yet they've been permitted to dictate policies to American companies on everything from climate change to diversity quotas.
The Trump administration's executive order seeks to shine a light on these operations and dramatically curtail their ability to impose a radical agenda on U.S. businesses.
"American investors deserve to have their voices heard, not drowned out by foreign-owned firms pushing policies that hurt workers, destroy shareholder value, and undermine American competitiveness," a senior administration official stated.
Rolling Back the Biden-Era Damage
Under the former Biden administration, these proxy advisory firms operated with virtually no oversight, freely pushing Environmental, Social, and Governance (ESG) policies that prioritized climate activism and diversity metrics over actual financial returns for investors. Hardworking Americans watching their 401(k) accounts saw their retirement savings used to advance a political agenda they never signed up for.
President Trump's order directs the Securities and Exchange Commission to implement new transparency requirements and accountability measures for proxy advisory firms. The order also calls for a comprehensive review of how these firms have potentially violated their fiduciary duties to American investors by prioritizing ideological goals over financial performance.
A Victory for American Capitalism
Conservative economic groups have long warned about the dangers of allowing unaccountable foreign entities to control the voting power of American shareholders. The proxy advisory industry has been a key mechanism through which the radical left has attempted to transform American capitalism from within, bypassing the democratic process entirely.
The executive order sends a clear message that the days of backdoor corporate manipulation are over. American companies should be focused on delivering value to shareholders and serving customers—not genuflecting to climate activists and DEI consultants operating at the behest of foreign interests.
With this bold action, President Trump continues to deliver on his promise to put America First and protect American workers and investors from those who would sacrifice U.S. prosperity on the altar of globalist ideology. The order is expected to face legal challenges from leftist groups, but the administration has signaled its readiness to defend American economic sovereignty in court.
For millions of Americans with retirement accounts and investment portfolios, this executive order represents a critical step toward ensuring their money works for them—not for foreign-controlled firms pushing a radical political agenda.