Jan 28 (Reuters) – Wells Fargo’s wealth and investment management division has severed ties with proxy adviser ISS, the Wall Street Journal reported on Wednesday, citing a person familiar with the matter.
The bank will make voting decisions on shareholder proposals without the help of proxy advisers like ISS and instead rely on a new internal system, the report said.
Wells Fargo and ISS did not immediately respond to Reuters requests for comment. Reuters could not independently verify the report.
Conservatives and some business leaders have long criticized proxy advisers and large fund managers, saying they too often urge shareholders to vote against boards or directors and place excessive weight on climate and social priorities.
Proxy advisory firms analyze shareholder proposals and corporate governance matters, issuing voting recommendations to institutional investors ahead of annual meetings.
Earlier this month, JPMorgan’s asset management division also said it no longer plans to use proxy advisers in the U.S.
In December, U.S. President Donald Trump signed an executive order to increase oversight of the proxy advisory industry, on the grounds that top firms often “advance and prioritize radical politically-motivated agendas”.
The industry has repeatedly denied wrongdoing and argued its recommendations are independent of any bias.
(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)
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