View Political Contributions proposal

Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, has submitted shareholder proposals asking six companies to disclose their policies and procedures for all political contributions using corporate monies.

The companies are AmSouth Bancorporation of Birmingham , AL ; Chevron Corporation of San Ramon , CA ; Cinergy Corporation of Cincinnati , OH ; Southern Company of Atlanta , GA ; Union Pacific of Omaha, NE; and Wal-Mart Stores, Inc. of Bentonville , AR.

The New York City Employees' Retirement System (NYCERS), Teachers' Retirement System for the City of New York (TRS), New York City Police Pension Fund, New York City Fire Department Pension Fund and the New York City Board of Education Retirement System (BERS) sponsored the proposals.

Collectively, the Pension Funds have a total of $969.4 million invested in the six companies.

The Pension Funds are requesting that each company disclose all of its political contributions and expenditures made with corporate funds, directly and indirectly, to political candidates, parties, committees, and other entities organized and operating under 26 USC Section 527 of the Internal Revenue Code.

The six companies contributed nearly $2.4 million in soft money to political activities during 2003 and 2004. However, payments to trade associations used for political activities is largely unknown.

“These policies will make companies more accountable and transparent to their shareholders and the public,” Thompson said. “Without these procedures in place, corporate executives will be free to use company assets for political objectives that are not necessarily shared by the entire company and its shareholders.”

“By pushing companies to disclose their policies for political contributions, the New York City Pension Funds are not only contributing to a more transparent political process but also working to ensure that shareholders get the best possible return on their money,” New York City Public Advocate Betsy Gotbaum stated. “Companies that are willing to be held accountable for their political expenditures make for better long-term investments.  I am proud that the Pension Funds are once again leading the way in shareholder activism.”

If adopted, the six companies will be asked to prepare a report that will include the following: the accounting of the Company's funds used for political contributions; the identification of the person (s) who made the political contributions; and a copy of the company's internal guidelines governing political contributions. The report will be presented to the Audit Committee of each company's Board of Directors, and posted on each company's web site.

“Relying on publicly available information does not complete the picture of a company's political expenditures,” Thompson said. “Procedures must be in place to monitor and report a company's giving patterns for a full evaluation of the political use of a corporation's assets.”

Besides Thompson, the Pension Funds trustees are:

Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; Peter Gorman, President and Captains’ Rep., Nicholas J. Visconti, Chiefs’ Rep., and Stephen J. Carbone, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

NYCERS: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

TRS: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

BERS: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Augusta Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (Bronx), Martine G. Guerrier (Brooklyn), Vivian Farmery (Manhattan), Michael Flowers (Queens), and Joan Correale (Staten Island); and employee members Thomas J. Malanga of the International Union of Operating Engineers, Local 891, and Milagros Rodriguez of District Council 37, Local 372.