By Jody Godoy
Aug 5 (Reuters) – The U.S. Department of Justice plans to rescind decades-old guidance on shareholder proxy advisors’ votes, an official said, citing significant antitrust concerns over consolidation in the industry.
U.S. President Donald Trump has called for an antitrust probe of proxy advisers Institutional Shareholder Services and Glass, Lewis & Co, which help mutual fund companies and other big institutional investors decide how to vote at corporate elections.
The DOJ is withdrawing a 1987 letter telling ISS that its business model of advising investors on corporate governance and shareholder votes did not raise antitrust concerns, a DOJ official said.
The advisors have long been under fire from conservative groups and Republican political leaders over their power to guide large swaths of the market, and their expressions of support for environmental, social and governance proposals.
A spokesperson for ISS did not immediately respond to a request for comment.
(Reporting by Jody Godoy in New York; Editing by Daniel Wallis)
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