JPMorgan axes proxy advisory firms

Summary

CNBC's Leslie Picker reports that JPMorgan is the first major investment firm to fully eliminate external proxy advisory services from its voting process. JPMorgan Asset Management is launching an AI-powered tool, Proxy IQ, with a transition period in the first quarter. The report also notes Jamie Dimon's past criticism of proxy advisers and a Trump executive order involving the industry.

• JPMorgan is ending use of external proxy advisory services in its voting process.
• JPMorgan Asset Management, with about $4 trillion in AUM, is launching AI-powered Proxy IQ.
• Proxy IQ analyzes data from more than 3,000 annual company meetings.
• ICE declined to comment, while Glass Lewis did not respond to CNBC.
• JPMorgan's memo cites advanced AI and a first-mover advantage.
• A transition period for the product is planned during the first quarter.
• Jamie Dimon has previously criticized the influence of proxy advisers.
• No investment recommendation or trade thesis is stated in the segment.