The CPA announced last week that 43 companies are expected to vote on political disclosure shareholder resolutions in the upcoming proxy season. Building on the 2006 resolution which sought board oversight and disclosure of soft money contributions, the resolution filed at many companies this year seeks disclosure and board oversight of both direct and indirect political spending including payments to trade associations and other tax-exempt organizations that are used for political purposes.
The new resolution targets the hundreds of millions of dollars of hidden corporate money flowing through trade associations and related groups to underwrite major political campaigns—some of which are not tied to the companies’ business interests.
Even before the start of the season, seven companies have agreed to adopt political transparency and accountability policies. Given the proposal’s success in 2006, the CPA expects strong votes for the new resolution. The 2006 proposal was a leading vote-getter, with support averaging 22% at 29 companies where it came to a vote—a breakthrough success for a resolution only in its third year.
See full Press Release, in pdf format.
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