Page 448 - DCAC Feb 2026 Files

EO Pushes Back on ESG, DEI Proxy Influences

• On December 11, President Trump signed an Executive Order (EO) to end what he called “the

outsized influence of proxy advisors that prioritize radical political agendas over investor

returns,” citing impacts on “American investors and retirement savings

• The EO directs several government agencies – the Department of Labor (DOL), Securities and

Exchange Commission (SEC) and Federal Trade Commission (FTC) – to scrutinize the practices

of those who vote proxies and proxy advisors, with a focus on those that have been

encouraging or supporting environmental, social and governance (ESG) and diversity, equity

and inclusion (DEI) agendas.1 The EO also calls for amendments that would convey investment

advisor fiduciary status on any individual or proxy advisor who receives compensation for

proxy voting or advising services.

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