Advocates and Investors Push for Transparency in Corporate Political Activity

Strategic Insights -

As the 2015 shareholder meeting season approaches, advocates and investors are poised to make a significant push for greater transparency in corporate political activity. Shareholders of some of the largest public companies in the US, including Google, JPMorgan Chase, and Citigroup, will vote on proposals calling for increased disclosure of lobbying expenditures and funds used to influence elections. This move comes in response to the surge of "dark money" in federal elections since the 2010 Citizens United decision, which allowed corporations to spend shareholder money to influence elections. In the past five years, shareholders have filed over 500 proxy resolutions to ensure that shareholders are informed of company political activity, with more than a quarter of social and environmental issue-related proposals focused on corporate politics.

Key Takeaways:

  • Shareholders of 10 large public companies, including Google, JPMorgan Chase, and Citigroup, will vote on proposals calling for increased transparency in corporate political activity.
  • These proposals aim to increase disclosure of lobbying expenditures and funds used to influence elections, in response to the surge of "dark money" in federal elections since the 2010 Citizens United decision.
  • Shareholders have filed over 500 proxy resolutions in the past five years to ensure that shareholders are informed of company political activity.
  • Corporate political activity proposals account for more than a quarter (112) of social and environmental issue-related proposals.
  • A rulemaking petition at the U.S. Securities and Exchange Commission to require disclosure of corporate political spending has received a record level of support, with over one million comments submitted - the vast majority in support.
  • The proposed resolutions and petition aim to increase transparency in corporate political spending, which has reached nearly $650 million in federal elections since the 2010 Citizens United decision.

Statistics:

  • Over $650 million has been spent on federal elections by corporations since the 2010 Citizens United decision.
  • Shareholders have filed more than 500 proxy resolutions in the past five years to ensure that shareholders are informed of company political activity.
  • Corporate political activity proposals account for more than a quarter (112) of social and environmental issue-related proposals.
  • Over one million comments have been submitted to the U.S. Securities and Exchange Commission in support of a rulemaking petition to require disclosure of corporate political spending.
  • The proposed resolutions and petition aim to increase transparency in corporate political spending.

Sources:

  • [https://si2news.files.wordpress.com/2014/07/corporate-political-activity-shareholder-proposals-2010-2014-as-of-7-2-14.pdf]
  • [http://www.proxypreview.org/proxy-preview-2015/]
  • [http://www.sec.gov/news/press-release/2015-82.html]