Congressman Bryan Steil introduced the Protecting Americans’ Retirement Savings from Politics Act on Apr. 15, aiming to establish new rules for proxy advisor firms. The legislation seeks to require greater transparency and prevent conflicts of interest within the industry, according to Steil. Congresswoman Ann Wagner is an original cosponsor of the bill.
The proposed act addresses concerns about how proxy advisors influence voting decisions related to retirement savings and corporate governance. Steil said, “Too often, proxy advisors have encouraged votes that run counter to the economic interests of retirees and seniors. Investment advisors and pension funds should be focused on securing your retirement, not advancing their political agenda.” He added, “My bill will bring accountability and transparency to the proxy advisor duopoly and help end the politicization of Americans’ retirement funds. I’d like to thank Congresswoman Wagner in joining me on this important legislation.”
The legislation would introduce several measures: it would require transparency and accountability from proxy advisory firms, prohibit robo-voting practices, ban consulting-related conflicts of interest, and mandate annual public reports from clients regarding their voting activities. Large asset managers would also need to explain how they use recommendations from these firms while prioritizing customer economic interests.
Proxy advisory services are dominated by two companies—Glass Lewis and Institutional Shareholder Services (ISS)—which together hold a 97% market share in the United States. ISS is owned by a German company while Glass Lewis is owned by Peloton Capital, a private equity fund.
Steil has represented Wisconsin’s 1st congressional district since replacing Paul Ryan in 2019 according to his biography. He has won several elections: defeating Peter Barca in 2024 with 54% of the vote; Ann Roe in 2022 with just over half; Roger Polack in 2020 with nearly sixty percent; and Randy Bryce in his first campaign in 2018 as reported by Ballotpedia.
Steil previously introduced similar legislation during the previous session of Congress where it passed by a narrow margin.
