JPMorgan Chase cuts ties with proxy advisory firms and will use an AI tool

JPMorgan Chase's asset-management unit is ending relationships with proxy advisory firms and plans to use an internal AI platform called Proxy IQ to assist with U.S. company votes in the upcoming proxy season.

JPMorgan Chase's asset-management unit (JPM-N) is reported to be ending its relationships with external proxy advisory firms, effective immediately, according to the Wall Street Journal citing an internal memo. The bank plans to deploy an internal artificial-intelligence platform it calls Proxy IQ to help with votes on U.S. companies during the coming proxy season. Proxy advisory firms such as Glass Lewis and ISS have traditionally provided voting recommendations to institutional investors ahead of annual shareholder meetings. The report noted that Reuters could not independently verify the memo and that the bank and the firms did not immediately comment. Known details: - The Wall Street Journal reported the change, citing an internal memo that said the asset-management unit cut ties with external proxy advisers effective immediately. - The firm plans to use an internal AI platform named Proxy IQ to assist with voting on U.S. company matters during the coming proxy season, which typically runs from March through June. - Proxy advisory firms such as Glass Lewis and Institutional Shareholder Services (ISS) issue recommendations that can influence board elections, executive pay decisions and environmental or social resolutions. - A spokesperson for JPMorgan Chase, Glass Lewis and ISS did not immediately respond to requests for comment, and Reuters could not independently verify the report. - The report noted that some conservatives and business leaders have criticized proxy advisers for their influence, and that in December President Trump signed an executive order aimed at increasing oversight of the proxy advisory industry, according to the coverage. Summary: The bank will shift from relying on external proxy advisory firms to using an internal AI-driven platform for guidance on shareholder votes, with the change set for the upcoming proxy season. The move was reported by the Wall Street Journal; Reuters could not verify the report and the parties did not immediately comment. Undetermined at this time.