An internal AI platform called “Proxy IQ” will be used for voting management and data analysis for more than 3,000 annual internal meetings.
[NEW YORK] JPMorgan Chase & Co.'s wealth management unit plans to cut ties with proxy advisory firms and use artificial intelligence to help vote on U.S. company stocks, people familiar with the matter said.
The company's internal AI platform, called Proxy IQ, will now be used to manage voting and analyze data from more than 3,000 annual company meetings, said the person, requesting anonymity to discuss private information. This change was first reported by wall street journal He said this earlier on Wednesday (January 7), citing an internal memo.
Companies such as Glass & Lewis & Company and Institutional Shareholder Services advise investors, including national pension funds and other large asset managers, on how to vote their companies' stocks on controversial topics such as executive pay and environmental, social and governance issues.
In his annual letter to shareholders, JPMorgan CEO Jamie Dimon accused advisers of “undue influence” on shareholder elections.
The New York-based bank previously announced it would remove recommendations from third-party proxy advisors from its proxy voting system. The new measure would also eliminate services provided by advisers to manage voting.
Last month, President Donald Trump issued an executive order seeking to limit the influence of advisers and directing the head of the Securities and Exchange Commission to review regulations related to the industry and whether they conflict with the administration's push to rein in diversity, equity and inclusion efforts. bloomberg
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