Trump's THIS order gives Elon Musk win over rivals that opposed his Tesla pay package

In a move likely giving Tesla CEO Elon Musk an edge over its long-time rivals, US President Donald Trump has ordered a review of two major proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, which Musk previously criticised over their opposition to his Tesla pay package.

This order is reportedly viewed as a significant win for Musk, who has expressed dissatisfaction with the advisory firms’ influence, especially when they recommended against certain corporate decisions at Tesla.

Trump's directives are aimed at firms that provide recommendations to shareholders on corporate votes, often causing friction with corporate executives.

The executive order directed the Securities and Exchange Commission to scrutinise the firms, particularly their use of diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) policies.

Kerry Berchem, a corporate governance expert, noted that even without immediate amendments, the order is expected to influence behaviours among boards and institutional investors, and prompt them to adjust their recommendations to align with regulations.

Trump's focus on ISS and Glass Lewis stems from concerns that these firms use their influence to promote political agendas.

The review suggests a shift in Corporate America away from DEI and ESG policies, as the Trump administration and many Republican allies criticised what they term “woke capitalism.” This concept suggests that corporations and advisors are prioritising social and political agendas over shareholder interests.