Attor­ney Gen­er­al Ken Pax­ton Sues World’s Largest Proxy Advi­so­ry Firm For Push­ing Rad­i­cal Polit­i­cal Agen­da Over Sound Finan­cial Guidance

Attorney General Ken Paxton sued Institutional Shareholder Services, Inc. ("ISS") for misleading institutional investors and public companies by issuing voting recommendations that prioritize radical political agendas over sound financial principles and fiduciary duty. 

ISS is the largest proxy advisory firm in the world and commands nearly half of the global proxy advisory market. The firm serves shareholders and boards of large corporations, ostensibly to guide investment and governance decisions. In practice, however, ISS proxy advisors have directed clients to support management decisions that advance DEI mandates, gender-based hiring quotas, and aggressive climate activist policies. Rather than providing objective guidance based on data, ISS has substituted ideological advocacy for legitimate financial counsel.

Notably, ISS has attempted to obstruct ExxonMobil's planned reincorporation from New Jersey to Texas. This is another example of ISS leveraging its market influence to impose a political agenda rather than serve the legitimate financial interests of companies and shareholders.

"ISS has enormous influence over how billions of dollars are invested and managed across this country, and they have abused that influence in order to push woke ideology. This, in turn, has often resulted in terrible financial advice disguised as 'progressive' shifts," said Attorney General Paxton. "I will not allow this woke corporation to smuggle radical, liberal ideology into the companies they advise and hurt our financial system. I am suing ISS to restore integrity to America's proxy voting system and put an end to the financial damage caused by putting liberal ideology above sound investment principles."

This lawsuit follows Attorney General Paxton's investigation into both ISS and Glass Lewis & Co., which was announced in September 2025. Under the Texas Deceptive Trade Practices Act ("DTPA"), Attorney General Paxton seeks to stop ISS from continuing its deceptive and illegal acts, civil penalties of up to $10,000 for each violation of the DTPA, among other relief.

The Office of the Attorney General will continue to aggressively investigate and hold accountable any proxy advisory firm that operates outside the bounds of the law.

To read the lawsuit, click here.