JPMorgan Ends Relationship with Proxy Advisory Firms, Reports WSJ

• The decision affects JPMorgan's asset-management division, which manages investments on behalf of clients
• Proxy advisory firms typically provide voting recommendations to institutional investors on corporate governance matters and shareholder proposals
• JPMorgan has not publicly commented on the reasons behind ending these advisory relationships

Summary

Key Development:

JPMorgan Chase's asset-management unit has severed all relationships with proxy advisory firms, effective immediately, according to a Wall Street Journal report citing an internal memo dated January 7, 2026.

Main Company:

JPMorgan Chase & Co., specifically its asset-management division, is the sole company featured in this development.

Details:

The decision was communicated through an internal memo, though JPMorgan has not provided official comment to Reuters, which could not independently verify the report at the time of publication.

Market Implications:

This move represents a significant shift in corporate governance practices for one of the world's largest asset managers. Proxy advisory firms traditionally provide research and voting recommendations to institutional investors on corporate governance matters, including board elections, executive compensation, and shareholder proposals. JPMorgan's decision to cut ties suggests the bank's asset-management arm will independently evaluate proxy voting decisions without third-party advisory input.

The decision could signal broader industry dissatisfaction with proxy advisory firms, which have faced criticism from some corporations and investors regarding their influence, potential conflicts of interest, and standardized recommendations. This may influence how other major asset managers approach their relationships with such firms.

Context:

The announcement comes as financial institutions continue reassessing their governance frameworks and external advisory relationships. The immediate implementation suggests a decisive strategic shift in JPMorgan's approach to shareholder voting and corporate governance oversight.

No specific financial figures or additional timeline details were provided in the brief report.