The world’s top asset managers, BlackRock and Vanguard, cut back on meetings with company executives due to new SEC guidance under the Trump administration, impacting discussions on climate change and diversity. The decline in meetings could leave executives with less input on strategy or facing surprise critical votes at shareholder meetings.

Recent Republican efforts to limit corporate actions resulted in a 28% and 44% decline in meetings for BlackRock and Vanguard, respectively. Consultants noted a decrease in discussions between shareholders and managers, affecting corporate elections on various issues beyond climate change, such as directorships and executive pay.

The new SEC guidance requires managers to file more complex forms if they pressure management on certain issues. BlackRock and Vanguard paused and then resumed meetings after assessing the new rules, resulting in changed patterns in their engagement with companies. The guidance impacts how fund firms disclose their voting intentions.

BlackRock and Vanguard have altered their approach to engaging with companies, meeting less frequently and being more cautious in revealing their voting intentions. The decline in meetings has affected the dialogue between fund managers and company leaders, creating challenges in understanding how fund managers might vote on critical issues.

The new SEC guidance has created a more challenging environment for shareholder talks, limiting the value of discussions between investors and companies. Corporate governance experts note that companies are finding it harder to gauge the thoughts and intentions of their major investors, impacting relationship building and decision-making in corporate governance.

Read more at Yahoo Finance: Analysis-BlackRock, Vanguard scale back company talks as new guidance bites