Exxon Mobil has accused major proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) of having conflicts of interest that may influence their recommendations regarding proposals tied to Texas.

The oil company claims the advisory firms have little incentive to support Texas-related proposals due to an ongoing legal battle with Texas Attorney General Ken Paxton. The dispute centers on allegations that the proxy advisers failed to properly disclose potential conflicts of interest to investors.

Proxy advisory firms provide voting recommendations to institutional investors on shareholder proposals and corporate governance matters. Their guidance often carries significant weight in determining the outcome of shareholder votes at major corporations.

The legal challenge involves state attorneys general who have filed suit against Institutional Shareholder Services, alleging the firm failed to adequately disclose conflicts of interest that could affect their advisory recommendations.

The dispute highlights broader tensions between corporate interests, proxy advisory firms, and state regulators over transparency and potential conflicts in the shareholder voting process. These advisory firms play an influential role in corporate governance decisions affecting major public companies.