The Landscape of Independent Proxy Advisory Firms
Proxy advisory firms serve institutional investors—pension funds, mutual funds, insurance companies, and asset managers—by providing research and vote recommendations on resolutions at shareholder meetings. While ISS and Glass Lewis command roughly 97% of the global market, a growing ecosystem of independent and regional firms offers alternatives that may carry fewer conflicts of interest and provide locally nuanced governance analysis.
Why Independence Matters
The duopoly of ISS and Glass Lewis has drawn scrutiny from regulators, issuers, and investors alike. Concerns include potential conflicts of interest (ISS, for example, also sells governance consulting services to the same companies it rates), one-size-fits-all voting policies, and limited accountability. Independent firms address these gaps by offering:
- Conflict-free research — Many independent firms, such as Egan-Jones and PIRC, do not provide consulting services to corporate issuers
- Regional expertise — Firms like Ethos (Switzerland), IiAS (India), and Proxinvest (France) bring deep local market knowledge
- Customized voting policies — Smaller firms often offer bespoke policy development rather than benchmark-only recommendations
Market Structure by Region
United States
Beyond ISS and Glass Lewis, three SEC-registered firms operate: Egan-Jones Proxy Services (est. 2002), Segal Marco Advisors (est. 2017, focused on multiemployer plans), and ProxyVote Plus (est. 2002). Egan-Jones, an employee-owned subsidiary of Egan-Jones Ratings Co., is the most prominent independent alternative, serving insurance companies, pension funds, and family offices.
United Kingdom
The UK hosts several notable firms. PIRC (Pensions & Investment Research Consultants), founded in 1986 by local authority pension funds, provides governance research and voting recommendations. Minerva Analytics (formerly Manifest), now owned by Solactive, covers approximately 9,000 companies across 70+ markets. IVIS (Institutional Voting Information Service), developed by The Investment Association in 1993, monitors FTSE All-Share companies using a distinctive colour-coded alert system rather than explicit vote recommendations.
Continental Europe
The European Corporate Governance Service (ECGS) network historically connected independent local advisors across Europe, with Proxinvest (France, est. 1995) as managing partner. Other ECGS members include Ethos Foundation (Switzerland), DSW (Germany), Frontis Governance (Italy), CORPORANCE (Spain), and VIRV Solutions (Netherlands). Glass Lewis acquired Proxinvest in December 2022, reshaping this landscape—though Ethos and DSW continue to operate independently.
Asia-Pacific & Emerging Markets
IiAS (Institutional Investor Advisory Services) is India's largest proxy advisory firm, covering approximately 1,000 companies representing over 95% of Indian market capitalization. It is one of only three SEBI-registered proxy advisors in India. In Canada, GIR provides ESG-integrated proxy voting services focused on responsible investors.
Recent Industry Developments
The proxy advisory landscape is undergoing significant shifts. In January 2026, JPMorgan Chase's asset management unit announced it would cut all ties with proxy advisory firms, becoming the first large investment firm to entirely stop using external proxy advisors. This move signals growing institutional interest in developing in-house voting capabilities, which could expand demand for independent, customizable advisory services as alternatives to the big-two model.
Meanwhile, regulatory attention continues. The SEC has debated proxy advisor oversight through multiple administrations, and a December 2025 executive order addressed proxy advisory firm regulation. In Europe, the Shareholder Rights Directive II has formalized transparency requirements for proxy advisors operating in EU markets.