JPMorgan Chase has announced that its asset-management unit will sever all ties with external proxy advisory firms, a move described by The Wall Street Journal as unprecedented among major investment firms. Effective immediately, the bank will use an internal, artificial-intelligence-powered platform named Proxy IQ to manage votes on U.S. company shares. The system will analyze data from more than 3,000 annual company meetings, providing recommendations directly to portfolio managers and replacing the conventional roles previously handled by firms such as Glass Lewis and Institutional Shareholder Services.
The decision marks a significant shakeup in an industry long reliant on proxy advisers for research, advice, and voting infrastructure. Proxy advisers have faced criticism from corporate executives and investors for wielding disproportionate influence over shareholder votes and for potential conflicts of interest. In December, a Trump administration executive order called for a review of the sector by securities and antitrust regulators, amplifying scrutiny on these firms. JPMorgan CEO Jamie Dimon has been an outspoken critic of proxy advisers, describing them as “incompetent” and advocating for their elimination in past industry speeches.
By relying entirely on Proxy IQ, JPMorgan positions itself as the first major investment firm to completely remove external advisers from the proxy voting process, according to the memo reported by The Wall Street Journal. While large investment managers have traditionally maintained internal teams to make proxy decisions, smaller firms have depended heavily on advisers. The AI platform not only aims to streamline the voting process but also to provide sophisticated data analysis, effectively internalizing functions that previously required third-party guidance.
The move could reshape the proxy advisory industry, which is dominated by ISS and Glass Lewis. Both firms have recently taken steps to adjust their offerings: ISS emphasized that it does not dictate corporate-governance standards, while Glass Lewis announced it will discontinue broad “benchmark” voting recommendations by 2027, focusing instead on tailored advice to individual clients. JPMorgan’s pivot underscores growing pressures on traditional advisers amid regulatory scrutiny and technological innovation in asset management.
