PRESS RELEASE
Treasurer Malek Voices Support for Attorney General Bailey’s Investigation into Proxy Advisory Firms over Alleged Misleading Practices
FOR IMMEDIATE RELEASE
Contact: Jackson Bailey, 573-526-6024
JEFFERSON CITY, MO – Missouri State Treasurer Vivek Malek today issued a statement commending Missouri Attorney General Andrew Bailey for initiating legal proceedings to investigate potential misconduct by major proxy advisory firms. Last week, Attorney General Bailey filed two petitions seeking to enforce civil investigative demands (CIDs) against Glass Lewis and Institutional Shareholder Services (ISS), stemming from allegations that the firms may have misrepresented the neutrality of their proxy voting recommendations.
The petitions allege that Glass Lewis and ISS promote certain ideological objectives—particularly those related to Diversity, Equity, and Inclusion (DEI) and environmental, social, and governance (ESG) factors—without fully disclosing the potential financial implications to their clients. According to the Attorney General’s Office, these alleged omissions may violate the Missouri Merchandising Practices Act by misleading institutional investors, including those managing retirement assets for Missouri families.
“I commend Attorney General Bailey for taking action to ensure transparency and accountability in the proxy advisory industry,” said Treasurer Malek. “Missourians deserve to know whether the advice being given to those managing their retirement savings is truly objective and focused on financial returns, not driven by undisclosed political or ideological agendas.”
“As State Treasurer, I have consistently fought to keep social activism out of public investment decisions,” Treasurer Malek added. “This investigation is an important step toward restoring trust and protecting the financial interests of Missouri’s taxpayers, retirees, and investors. We cannot afford to allow opaque, agenda-driven practices to go unchecked.”
Treasurer Malek reaffirmed his commitment to ensuring that Missouri’s public funds and retirement systems are managed with fiduciary integrity, free from undue influence by third-party actors who may prioritize ideology over investment performance.
