Paxton Launches Dual Actions Against Proxy Advisors and Plano ISD

Lead: Texas Attorney General Ken Paxton opened an investigation into proxy advisory firms Glass Lewis and ISS and demanded records from Plano Independent School District over antisemitic incidents on Wednesday, underscoring his office’s aggressive enforcement approach.

Nut Graf: By targeting the powerful de facto gatekeepers of corporate governance and probing a public school system for alleged antisemitism, Paxton is reinforcing his commitment to conservative priorities-from challenging ESG influence to policing cultural issues in education-just eight months before his Senate bid.

Probe of Proxy Advisors Glass Lewis and ISS

• Paxton’s office issued civil investigative demands to Glass Lewis & Co. and Institutional Shareholder Services, Inc., accusing them of misleading institutional investors with recommendations driven by political agendas rather than financial analysis.
• The inquiry focuses on whether the firms violated Texas consumer protection statutes by failing to disclose material facts when advising on shareholder votes related to environmental, social and governance proposals.
• Combined, Glass Lewis and ISS advise trustees of more than $30 trillion in assets, giving Paxton’s probe potential national impact on proxy voting practices.

Investigation of Plano Independent School District

• Paxton demanded documents and testimony from Plano ISD officials after reports that district staff permitted or ignored antisemitic harassment of students.
• His civil investigative demand seeks emails, policies and disciplinary records to determine if the district violated Texas’s anti-discrimination and student-protection laws.
• The action aligns with Paxton’s recent efforts to enforce state standards on school curricula and conduct, following high-profile fights over critical race theory and prayer in schools.

Background and Significance: Paxton’s probe of proxy advisors builds on a broader Republican backlash against ESG criteria, with similar investigations in other red states. Meanwhile, the Plano ISD action amplifies his office’s cultural-regulatory agenda, which has targeted everything from school library content to curriculum standards. Both efforts illustrate Paxton’s strategy of combining high-profile lawsuits and investigations to mobilize his conservative base ahead of an anticipated U.S. Senate campaign.