The Free Enterprise Project has five shareholder proposals coming to a vote at American Airlines, Dick's Sporting Goods, Caterpillar, Target, and Best Buy. FEP's Stefan Padfield says his group owns shares in corporations so they can "talk shop" with executives at shareholder meetings. He explains what's coming up for a vote.
"We've got two proposals that are asking the companies to end their participation in the Human Rights Campaign's Corporate Equality Index; we've got two proposals asking companies to assess their affirmative action risks; and we've got one proposal asking a company [Caterpillar] to end its diversity, equity and inclusion [DEI] program in its entirety." (Read more details)
With the Trump administration speaking out against issues such as DEI, some consumers and shareholders may think there's nothing to be concerned about these days. In fact, since the 2024 election some companies have announced a move away from controversial policies.
Padfield, however, argues it is important that people pay attention to company policies and speak with executives when possible.
"We definitely need to celebrate the victories of corporations getting back to neutral, waking up to how divisive and costly these discriminatory initiatives are," he says. "But at the same time, we're definitely seeing some changes that are purely cosmetic."
He accuses some companies of hypocrisy.
"… One minute they're saying 'Yeah, we're going to make these changes' and the next minute they're saying 'We've changed nothing.' So, … in the words [popularized by President Ronald Reagan while he was in office] we have to 'trust, but verify.'"
FEP admits it doesn't expect the proposals to pass but argues the final vote tallies will not reflect the will of the majority of individual shareholders.
