WASHINGTON, D.C. – In response to news that JPMorganChase is ceasing use of proxy advisory firms, Mike Flood, Senior Vice President, Center for Capital Markets Competitiveness at the U.S. Chamber of Commerce issued the following statement:
“The Chamber commends JPMorganChase for ceasing use of proxy advisory firms in relation to voting recommendations. America's proxy system - designed to give shareholders a voice in corporate decisions through representatives - has been hijacked by proxy advisory firms pushing extraneous agendas rather than protecting investor returns.
“The proxy advisory industry is dominated by two firms riddled with conflicts of interest, and the system is being abused. We appreciate the work of President Trump and Members of Congress who have recognized this problem and are working to fix it. The Chamber looks forward to working with the SEC to modernize the U.S. proxy system and put shareholders first.”
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