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Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, has submitted shareholder proposals asking 10 companies to disclose their policies and procedures for all political contributions using corporate monies.

“The New York City Pension Funds and I want to make sure that companies are more accountable to their shareholders and the public,” Thompson said. “Corporate executives should not feel free to use their company assets to advance any political objectives that are not shared by shareholders and the entire company. We are urging these companies to support this important critical governance reform.”

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.

Resolutions have been filed with: Entergy Corporation of New Orleans, LA; Lyondell Chemical Company of Houston, TX; Limited Brands, Inc. of Columbus, OH; EMC Corporation of Hopkinton, MA; Charles Schwab Corporation of San Francisco, CA; CIGNA Corporation of Philadelphia, PA; and, Lockheed Martin Corporation of Bethesda, MD.

The measures were resubmitted with: Chevron Corporation of San Ramon, CA, Union Pacific Corporation of Omaha, NE, and Wal-Mart Stores of Bentonville, AR. Measures filed by the Pension Funds last year with the three received enough shares cast in their favor to allow the resolutions to be submitted again.

Collectively, the Pension Funds have more than $1.3 billion invested in the companies.

“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,” said

NYCERS Trustee and New York City Public Advocate Betsy Gotbaum. “Companies who 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.” 

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.

Eight of the companies contributed $667,500 in soft money to political activities during 2003-2004, the last fully reported election cycle. Company soft money contributions have not been uncovered during that period for Entergy and Limited Brands, but payments for these – and all others – to trade associations used for political activities were undisclosed and unknown.

If adopted, the 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.

“Shareholders and each company’s board need full and complete disclosure of the company’s political expenditures to fully evaluate the political use of their corporate assets,” Thompson said. “We are calling on each company to let its shareholders have a voice in charting the future for this critical governance reform.”
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; Edward 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.

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