BofA's Merrill Lynch to end use of proxy advisers starting 2027

What happened

Bank of America's Merrill Lynch unit plans to stop using proxy advisers starting in 2027. From January, clients cannot delegate proxy voting authority to Institutional Shareholder Services and Merrill will assume that authority unless clients opt out by December 15.

Confirmed

Global impact / market context

Proxy advisers recommend how investors vote at shareholder meetings. Moving voting decisions inside the bank shifts influence over boardroom choices and climate or social proposals away from outside firms, which conservative critics argued pushed agendas against company directors.

Analyst inference

JPMorgan Chase's asset management division already moved to cut ties with US proxy advisers, described as an industry first. The shift follows a 2025 executive order seeking more oversight of proxy advisers, signaling wider bank caution toward those firms.

Analyst inference

What to watch

1. Track whether Merrill clients opt out of the transition by the December 15 deadline, since those who do not will have Merrill accept proxy voting authority. Confirmed
2. Watch how other large asset managers respond, because JPMorgan's earlier move and this step could pressure rivals to bring shareholder voting decisions in-house. Analyst inference
3. Watch whether shareholder proposals and board votes swing more toward management, since removing ISS recommendations may change how climate and social resolutions fare. Analyst inference

Evidence

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