Bank of America Merrill Lynch to Cut Proxy Advisers

The financial institution plans to manage shareholder voting internally starting in 2027.

Updated on Oct. 30, 2026 in Public Companies

Bold flat-color editorial illustration of a singular stone plinth, representing institutional control and internal corporate governance. — Bank of America Merrill Lynch plans to bring shareholder voting processes in-house by 2027, ending reliance on third-party proxy advisory services. AI Illustration. Upload story photo >

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Should large corporations prioritize social and climate issues in their shareholder voting processes?

Bank of America Merrill Lynch will cease using third-party proxy advisers beginning in 2027. This move reflects a broader trend among large U.S. banks to transition shareholder voting processes in-house.

Why it matters

The change follows ongoing criticism that proxy advisers often push agendas focused on climate and social issues. By managing votes internally, these institutions aim to exert greater control over boardroom decisions.

This transition marks a shift in how major banks process corporate governance, moving away from external agencies that have held influence over voting recommendations for years.

The players

Bank of America Merrill Lynch

This is a major American multinational investment bank and financial services holding company that serves a wide range of corporate and individual clients.

The details

Large banks are increasingly moving their voting management in-house to reduce the influence of outside firms. This strategy is designed to bypass recommendations that frequently oppose boardroom decisions or prioritize social and environmental advocacy.

Bank of America Merrill Lynch will stop using proxy advisers starting in 2027.

Market Landscape

This decision represents a notable shift in the reliance on firms operating under the SEC Proxy Advisory Firm Rule. It positions the bank to reclaim control over governance decisions away from external entities that have traditionally influenced shareholder voting outcomes.

For shareholders, this transition may change how voting recommendations are presented and executed during corporate elections. Investors should expect more direct influence from the bank's own leadership regarding board appointments and company policy votes.

The takeaway

Large financial institutions are increasingly prioritizing internal control over their corporate governance strategies. Investors should monitor how these internal processes compare to the historical influence exerted by third-party proxy advisers.