White House mulls executive action to curb index-fund voting influence

The Trump administration is weighing executive actions to limit the influence of major index-fund managers — including BlackRock, Vanguard, and State Street — according to The Wall Street Journal. The move follows growing criticism from business leaders such as Elon Musk and Jamie Dimon, who argue these firms wield excessive control over corporate decisions.

Source Investing.com

The proposals could include restrictions on proxy advisers like ISS and Glass Lewis and new rules requiring fund managers to align shareholder votes with their clients’ preferences. Collectively, these firms manage over 30% of shares in most major U.S. companies, giving them massive sway in boardroom outcomes.

If enacted, the measures would mark a significant shift in U.S. corporate governance, curbing the power of the so-called “Big Three” on Wall Street and potentially reshaping how shareholder democracy operates.