JPMorgan Chase’s asset‑management arm has ended all contracts with the two dominant proxy advisory firms, Institutional Shareholder Services and Glass Lewis, and will use an internally developed artificial‑intelligence platform called Proxy IQ to process voting data from more than 3,000 annual company meetings. The transition takes effect immediately for the current proxy season, making JPMorgan the first major U.S. investment manager to abandon external advisors for proxy voting.
Proxy IQ aggregates raw proxy data, applies machine‑learning models to assess governance risks, and generates voting recommendations that align with JPMorgan’s investment mandates. The platform is built on the bank’s existing AI infrastructure, which has already been deployed in credit underwriting and market‑making. By moving the entire workflow in‑house, JPMorgan eliminates the fees it previously paid to ISS and Glass Lewis—estimated at several hundred million dollars annually—and gains full visibility into the data and decision logic used to vote on behalf of its clients and the bank’s own holdings.
The decision follows mounting political and regulatory scrutiny of proxy advisors, including a Trump‑era executive order that questioned their influence and potential conflicts of interest. CEO Jamie Dimon has publicly criticized proxy advisors as “incompetent,” and the move signals JPMorgan’s intent to reduce perceived conflicts and demonstrate a commitment to client‑centric governance. The cost savings from eliminating third‑party fees, combined with tighter control over voting policy, are expected to improve margin discipline in the asset‑management division.
Clients will continue to receive the same voting outcomes, but the process will now be driven by JPMorgan’s proprietary analytics. The bank has indicated that Proxy IQ will be fully integrated into its client‑facing platforms within the next 12 months, allowing clients to view the AI‑derived recommendations and the rationale behind each vote. The transition is designed to be seamless, with no disruption to existing proxy voting schedules or client reporting.
JPMorgan’s announcement underscores a broader industry shift toward data‑driven governance. By taking the first step, the bank may pressure ISS and Glass Lewis to offer more customized, client‑specific solutions. The move also dovetails with JPMorgan’s broader AI strategy, which has already seen the deployment of generative‑AI assistants for employees and AI models for financial analysis. Management’s emphasis on “information advantage” reflects confidence that in‑house analytics will provide a competitive edge in both cost and decision quality.
In the context of JPMorgan’s recent financial performance, the bank reported net income of $14.4 billion and revenue of $47.1 billion in Q3 2025, beating analyst expectations. The company’s asset‑management division manages over $4.5 trillion in assets, with some estimates citing more than $7 trillion. Guidance for 2025 Net Interest Income has been raised to approximately $95.8 billion, signaling confidence in the bank’s core earnings power. The proxy‑voting initiative, while not directly tied to quarterly earnings, reinforces JPMorgan’s focus on operational efficiency and risk management, positioning it for sustained long‑term growth.
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