On Saturday, Texas Governor Greg Abbott signed into law Senate Bill 2337, which imposes new regulations on proxy advisory firms such as ISS and Glass Lewis. Liz and Meredith have been covering developments with this legislation over on the Proxy Season Blog. This new law will become effective on September 1, 2025. As described in this blog, the new Texas law will mandate certain disclosures when proxy advisory firms recommend casting a vote for “non-financial reasons” or provide conflicting advice to multiple clients. The “non-financial” reasons include a recommendation wholly or partly based on environmental, social or governance investing, diversity, equity or inclusion, social credit or sustainability scores or membership in or commitment to an organization or group that bases its assessment of a company’s value on nonfinancial factors.

– Dave Lynn