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In a victory for corporate transparency, New York City Comptroller William C. Thompson, Jr. today announced that three companies have agreed to disclose their policies and procedures for political contributions as a result of shareholder resolutions submitted by the New York City Pension Funds.

“As long-term shareholders of these companies, the New York City Pension Funds support transparency and accountability in corporate spending on political activities,” Comptroller Thompson said.  “By agreeing to implement these new policies, Entergy, the Hartford, and Heinz are illustrating their commitment to corporate governance reform.”

Entergy Corporation received a similar proposal last year from the Pension Funds, which garnered more than 28 percent of the vote at the annual shareholder’s meeting.

The Comptroller’s Office has submitted resolutions to fourteen companies during this year’s proxy season requesting the full disclosure of political contributions and expenditures made with corporate funds. Thompson agreed to withdraw resolutions to three companies who have notified the Comptroller of their intentions to comply with the request, Entergy Corporation of New Orleans, LA, Hartford Financial Services Group of Hartford, CT, and H.J. Heinz Company of Pittsburgh, PA.

An example of the shareholder resolution can be viewed at www.comptroller.nyc.gov

The resolution states that the companies provide a semi-annual report disclosing:

• Policies and procedures for political contributions and expenditures (both direct and indirect) made with corporate funds;

• Monetary and non-monetary political contributions and expenditures not deductible under section 162 (e)(1)(B) of the Internal Revenue Code, including contributions or expenditures on behalf of political candidates, political parties, political committees and other political entities organized and operating under 26 USC Sec. 527 of the Internal Revenue Code;

• An accounting of the Company’s funds that are used for political contributions or expenditures; and

• Identification of the person or persons in the Company who participated in making the decisions to make the political contribution or expenditure.

In addition, the report shall be presented to each company’s board of directors’ audit committee or other relevant oversight committee and posted on the company’s website to reduce costs to shareholders

Collectively, the Funds have 2,241,418 shares in the three companies.

The New York City Pension Funds have submitted the same resolution to Tyco International, Regions Financial Corporation, Burlington Northern Santa Fe Corporation, Norfolk Southern Corporation, The Travelers Companies Inc., Charles Schwab, Union Pacific Corporation, Altria Group Inc., DTE Energy, Halliburton, and Dominion Resources Inc.

Four of these resolutions are re-files: DTE Energy, Charles Schwab, Halliburton, and Union Pacific. They garnered 29.7 percent, 28 percent, 32.1 percent, and 35.4 percent of shareholder votes last year respectively.

“I strongly urge these companies to follow the lead of Entergy, Heinz, and the Hartford in implementing these policies,” Thompson said.  “By doing so, they will join a growing number of leading companies that support political disclosure and accountability.”

In the past, the New York City Pension Funds have successfully secured shareholder victories at Devon Energy, DTE Energy, Duke Energy Corporation, Limited Brands, Cigna Corporation and United Technologies Corporation to disclose the details of their political contributions.

The New York City Pension Funds are the: New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and Board of Education Retirement System.

Trustees (chairs in bold) are as follows: 

New York City Employees’ Retirement System: 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), James Molinaro (Staten Island), and Acting Borough President Earl D. Brown (Bronx); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System: 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.

New York City 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 D. Mullins, Sergeants Benevolent Association; Thomas Sullivan, Lieutenants Benevolent Association; and, Roy T. Richter, Captains Endowment Association.

New York City 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; John Dunne, Captains’ Rep.; John J. McDonnell , Chiefs’ Rep., and James J. McGowan, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

Board of Education Retirement System: mayoral appointees Schools Chancellor Joel Klein (Designee, Kathleen Grimm, serves as co-chair), Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Edison O. Jackson, Richard Menschel and Marita Regan; Patrick Sullivan (Manhattan), Wendy Gilgeous (Brooklyn), Joan Correale (Staten Island); and Dmytro Fedkowskyj (Queens); Anna Santos (Bronx);  and employee members Joseph D'Amico of the IUOE Local 891 and Milagros Rodriguez of District Council 37, Local 372 (serves as co-chair).

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