Bank of America Merrill Lynch to End Proxy Adviser Use

Financial institutions are shifting shareholder voting management in-house to gain better control over corporate decisions.

Updated on Oct. 30, 2026 in Public Companies

Bold flat-color editorial illustration of a steel ballot box on a pedestal, representing corporate governance policy. — Bank of America Merrill Lynch announced it will cease using external proxy advisers by 2027, moving shareholder voting processes in-house. 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 the use of external proxy advisers by 2027. This move signals a broader trend among major U.S. financial institutions to transition shareholder voting management to in-house teams.

Why it matters

Proxy advisers have faced increasing criticism for favoring climate and social advocacy over traditional boardroom decisions. By moving these functions internally, banks gain greater control over how their voting records align with their specific corporate strategies.

Bank of America Merrill Lynch is moving to bring shareholder voting in-house by 2027. This transition represents a shift from third-party reliance for one major institution, with the total scale of future internal hiring and budget reallocation remaining unknown.

The players

Bank of America Merrill Lynch

A major global financial institution providing banking, investment, and wealth management services.

The details

The decision to bring shareholder voting in-house allows firms to bypass recommendations that often push for votes against board-recommended policies. By managing these processes internally, banks can streamline their voting rationale and maintain focus on internal priorities. This strategy effectively removes the influence of outside entities that frequently emphasize non-financial social and climate considerations in their recommendations.

2027: Bank of America Merrill Lynch officially ceases the use of proxy advisers.

Market Landscape

The shift represents a departure from the industry-wide reliance on the rise of ESG-focused shareholder advocacy. It follows a growing movement among large banks to regain autonomy over shareholder voting records.

Operators should evaluate whether their own corporate governance structures remain aligned with their internal strategic priorities. Reviewing current third-party relationships for potential in-house alternatives can help maintain better control over board-level voting decisions.

The takeaway

Management should recognize the shift toward internalizing voting control as a signal that board autonomy is becoming a higher priority for large firms. Monitor upcoming shareholder meetings to see how in-house voting models differ from the recommendations provided by historical proxy advisers.