
Proxy voting giants investigated by Missouri AG for misleading clients about their DEI and ESG priorities
Bailey argued in civil investigative demands sent to Glass Lewis and Institutional Shareholder Services (ISS) that they are violating state consumer protection law by assuring their customers that their proxy voting recommendations are based solely on data and research – and are entirely neutral. But, simultaneously, Bailey argues that publicly available documents from the firms show that their proxy voting recommendations are designed to advance DEI and environmental causes regardless of whether they undermine investor returns.
Glass Lewis and ISS are two foreign-owned powerhouses that control roughly 97% of the U.S. proxy advisory market, according to an April report from the House Financial Services Committee. The firms specialize in providing voting recommendations to institutional investors – such as pension funds, retirement systems and mutual funds – on how to vote during corporate shareholder meetings. These votes frequently include decisions related to board member elections, executive compensation, company policies and other proposals.
"Missourians deserve answers as to why the unseen power brokers, controlling much of corporate America, are pushing a leftist worldview at the expense of millions of honest investors," Bailey said. "These are foreign-owned actors manipulating the U.S. economy, and we will not let them thrive any longer. We are going after the source. These proxy advisors have held corporate America hostage with their radical ideologies. We are putting them on notice: Missouri will not tolerate ideological coercion disguised as investment guidance."
In an enforcement petition Bailey sent to the state circuit court in an effort to compel the companies' compliance with the new probes, the attorney general points to statements on both ISS and Glass Lewis's websites, respectively, that insist they provide "objective and impartial offerings" that are "based on research and data." At the same time, Bailey points to internal company documents, such as a document titled "2025 Benchmark Policy Guidelines" from Glass Lewis, which includes numerous sections on the importance of advancing DEI and ESG causes.
"This means that Glass Lewis's statement that it provides 'research and data' that allows its customers to 'make informed investment decisions' is false," Bailey wrote in his enforcement petition against Glass Lewis.
Similarly, at ISS, Bailey points to company statements claiming it provides customers with "objective and impartial offerings," while simultaneously producing internal company reports that include commitments to recommending votes in favor of proposals "calling for the reduction of [greenhouse gas] emissions."
In addition to allegedly misleading consumers about their company priorities, Bailey is accusing Glass Lewis and ISS of omitting or failing to disclose material information about how it weighs DEI and ESG standards when recommending votes.
Bailey's investigation is requesting a range of internal documents and communications to help determine whether Glass Lewis or ISS violated state consumer protection laws through its allegedly misleading claims and lack of transparency.
"ISS and Glass Lewis have been harming consumers and misleading institutional investors by promoting a radical political agenda instead of focusing on maximizing returns. By taking legal action against both firms, Attorney General Bailey is doing the right thing and holding them accountable for selfishly prioritizing racist DEI quotas, climate activism, and other outdated ESG nonsense," Will Hild, Executive Director at conservative nonprofit Consumers' Research said in a statement to Fox News Digital.
"Such deception is not just financially reckless but also illegal and must be met with consequences," Hild continued. "This necessary investigation will aid in exposing these activist proxy advisors for deliberately ditching fiduciary duty in the name of furthering the ESG scam."
Neither Glass Lewis nor ISS responded to repeated requests from Fox News Digital for comment.
Earlier this year, Glass Lewis was served with a similar civil investigative demand by Florida's Republican Attorney General. That move followed another similar request for information in 2023 by 21 state attorneys general, including Bailey at the time.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Steady Dividends from Industrial Strength: Pentair (PNR) in Focus
Pentair plc (NYSE:PNR) is included among the Top 10 Safest Dividend Stocks in the UK. A factory worker with protective goggles and a hardhat inspecting a water filtration system. Pentair plc (NYSE:PNR) is an American company focused on water treatment solutions. While its headquarters are in the United States, the company is legally registered in Ireland and has its tax residence in the United Kingdom. Piper Sandler recently identified Pentair plc (NYSE:PNR) as a leading contender in the artificial intelligence surge. The firm started covering the software company with an Overweight rating and set a price target of $175, indicating a potential upside of around 13% from Palantir's closing price on Thursday. Pentair plc (NYSE:PNR) recently reported its earnings for the second quarter of 2025 and demonstrated a strong cash position. The company's operating cash flow was $607 million, and its free cash flow was $596 million. It also paid $82.4 million to shareholders through dividends. In addition, PNR has been rewarding its shareholders with growing dividends for the past 49 years. Currently, it pays a quarterly dividend of $0.25 per share and has a dividend yield of 0.97%, as of July 25. While we acknowledge the potential of PNR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
Yahoo
13 minutes ago
- Yahoo
Barack Obama thinks adults shouldn't eat ketchup
The president's controversial stance on ketchup is sparking debate Barack Obama has stirred up an unexpectedly spirited debate over a beloved American condiment, and the reactions are as saucy as the subject itself. During a lighthearted episode of the Michelle Obama IMO podcast, co-hosted by the former First Lady and her brother Craig Robinson, Barack shared his long-standing—and rather unwavering—belief that ketchup is strictly for kids. 'In my opinion, and this is controversial in my family, but you should not eat ketchup after the age of 8,' he said, his tone firm despite the room's laughter. Michelle, clearly familiar with this culinary hill her husband is willing to die on, noted that the ketchup cut-off age seems to get younger every time he brings it up. 'Last time, I think it was 10,' she chuckled. Barack stood his ground, expanding on his perspective. 'I have nothing against kids having ketchup on burgers or fries—even ketchup on hot dogs, which is hard for me to watch—but at a certain point, you've gotta outgrow it,' he said. He conceded, 'I might be a little too draconian in my attitude,' but maintained that 'ketchup has its place.' Craig, ever the playful provocateur, called it like he saw it: 'It sounds like you're saying ketchup is childish.' Barack didn't disagree. 'When I see a grown person pouring a lot of ketchup on something—I told you this was controversial in my family,' he repeated, smiling at the familial pushback. Despite his condiment convictions, Michelle confirmed that the Obama household is far from ketchup-free. 'There's always ketchup in the house,' she said. 'Everyone uses it. Except him.'


CNN
15 minutes ago
- CNN
Trump Doesn't Rule Out Pardon For Ghislaine Maxwell - Laura Coates Live - Podcast on CNN Podcasts
Trump Doesn't Rule Out Pardon For Ghislaine Maxwell Laura Coates Live 47 mins President Donald Trump denied again today that he was briefed on his name appearing in files tied to the Jeffrey Epstein case, despite reports by CNN and other outlets on the briefing. The administration remains dogged by public criticism over its handling of the case.