Will Curbs on Proxy Advisors Make Shareholder Votes Less Predictable?

As the administration challenges the power of proxy advisors and some institutional investors take decision-making in-house, it may be harder to muster support for critical shareholder votes and outcomes could be less predictable. Partner Elizabeth Gonzalez-Sussman, of counsel Ron Berenblat and associate Roy Cohen discuss how regulatory scrutiny, the internalization of voting processes (sometimes with the assistance of AI tools) and the decentralization of decision-making are transforming the proxy voting ecosystem, and they offer practical guidance for boards to adapt to these changes.