Elon Musk is correct in saying that proxy advisory firms hold too much power. Proxy advisors influence how shareholders vote on corporate governance issues, such as board elections and executive compensation. Yet these advisors are often paid by the companies they are advising, creating an incentive to recommend proposals that are favorable to the company. This creates a conflict of interest and can lead to investors not receiving unbiased advice. Additionally, these firms often lack transparency in their decision-making processes and lack sufficient accountability for their decisions.