Trump delivers a surprise strike at Wall Street’s “referees,” shaking the financial world. The move reshuffles the game—and unexpectedly hands Elon Musk a major advantage as one of the biggest beneficiaries.

A new executive order issued by President Donald Trump is shaking the U.S. corporate governance world by calling for a review of two major shareholder voting advisory firms, ISS and Glass Lewis. The move not only addresses long-standing frustrations voiced by Elon Musk and many Wall Street leaders, but also sends a strong signal that the White House intends to rein in the influence of ESG and DEI standards in corporate decision-making.

The executive order instructs the U.S. Securities and Exchange Commission (SEC) to scrutinize the operations of ISS and Glass Lewis, particularly how the two firms incorporate environmental, social, and governance (ESG) criteria, as well as diversity, equity, and inclusion (DEI) principles, into their voting recommendations.

According to the White House, these organizations wield significant influence to promote “politically driven agendas” that may conflict with the pure financial interests of shareholders. While no immediate regulatory changes have been announced, legal experts note that simply being placed under government scrutiny is enough to prompt behavioral adjustments across the entire industry.

What role do ISS and Glass Lewis play on Wall Street?

ISS (founded in 1985) and Glass Lewis (founded in 2003) are independent proxy advisory firms that provide voting recommendations to major institutional investors, such as pension funds and trillion-dollar asset managers, on how to vote at shareholder meetings.

They assess key issues including executive compensation, board structure, mergers and acquisitions, and climate policies. Their influence has led many CEOs to complain that critical corporate decisions are being shaped by “outsiders” rather than company leadership.

How does Elon Musk benefit from this executive order?

This is widely seen as a clear win for Elon Musk, who has repeatedly criticized ISS and Glass Lewis for recommending that shareholders vote against proposals at Tesla, including his own compensation package.

Not only Musk, but many Wall Street leaders—including JPMorgan Chase CEO Jamie Dimon—have also argued that the power of proxy advisory firms has gone too far. Trump’s executive order is therefore widely seen as an initial step toward “restoring balance” to corporate boards.

In recent years, the Trump administration and many Republican lawmakers have repeatedly attacked what they call “woke capitalism,” arguing that ESG and DEI initiatives distort the goal of maximizing shareholder value.

The new executive order signals the White House’s intent to curb the influence of these standards, while pressuring companies and investment advisers to refocus on more purely financial priorities.

What happens next for ISS and Glass Lewis?

Beyond the SEC, the U.S. Federal Trade Commission (FTC) has also been instructed to examine whether the two firms may have violated antitrust laws. Earlier, Florida’s attorney general filed a lawsuit raising similar allegations.

ISS and Glass Lewis maintain that they operate independently, ethically, and do not impose governance standards. However, experts say the outcome of these reviews will determine whether this move is merely a “political warning” or the beginning of far-reaching changes.