Proxy Advisor Could Be Next Sector Disrupted By AI: Meanwhile Shareholder Activism Surges, CEOs Targeted

 The moves JP Morgan make resound throughout global business.

Its latest, reports The Wall Street Journal, is for having its asset-managing stop using proxy advisors. Those firms in that niche range from Glass Lewis to Institutional Shareholder Services. 

Here's the development:

“JP Morgan … is cutting all ties with proxy-advisory firms effective immediately … it will start using an internal artificial-intelligence-powered platform it is calling Proxy IQ to assist on U.S. company votes … to manage the votes and the AI also will analyze data from more than 3,000 annual company meetings and provide recommendations to the portfolio managers …”

This is a move from a position of political strength since the Trump administration also is anti proxy advisors.

So, yet another industry could be disrupted by AI.

Meanwhile, a practice growing in elite law firms is defense against activist shareholders. Some of the growth is coming from lateral activity. Paul, Weiss has poached from Wachtell, for instance, and Cleary from Wilson Sonsini.

Call it "CEO Targeting." In terms of shareholder activism that has quadrupled since 2018, with female CEOs especially vulnerable, documents the Harvard Law School Forum on Corporate Governance. As a result, the targeting has generated:

" ... leadership changes and making rigorous performance reviews, transparent succession planning, and proactive board engagement"

Chief Executive sums up 2025 as the year CEOs were hit with realities. They could no longer hold on to illusions that the key factors of the business were under control. Therefore, moving into 2026, what has become obvious, especially to activist investors are:

"Supply chains rebuilt for resilience are now exposing fragility in the balance sheet, investments in AI are generating wildly uneven returns and operational complexity is quietly eroding margins in ways that don’t show up until it’s too late."

Therefore, anticipate shareholder activism to continue to challenge corporate leadership in 2026.

Of course, you want to know what elite law firms do for clients under attack. Here's a snippet from Paul, Weiss:

"We help public companies and their boards prepare for, respond to and navigate activist share accumulations, settlements, proxy contests and other hostile campaigns. [That includes] the activist investor playbook, whether the focus is changes to management or directors, a shift in strategy, return of capital, operational changes or pursuing a takeover, break-up or sale of a company."

In coaching, I am still encountering denial about the scope and pace of change in business models as well as career paths. To get a handle on reality I encourage the unemployed to get a job, any job. If they just sit in isolation hunting for jobs, many of which may no longer exist, they might never return to working for income. They no longer are capable of giving off the vibe: I am ready to work. Get results for you. Do that better than others competing for this opportunity.

Success is a mental game. Failure comes from being done in by the “committee” in your head.

Together, we reprogram your thinking. Then we change your story. And, unleash success.

Intuitive Coaching. Special expertise with transitions, becoming a solopreneur and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. Zero risk.

Don’t give up before the miracle.


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