Shareholder Resolutions

[bjarvis]

As a (trivially small) shareholder of Kraft Foods Inc., I received an automated notice from ProxyVote.com which would allow me to cast my votes on four resolutions prior to the annual shareholders' general meeting.

The first three questions were relatively commonplace: voting in a slate of directors, approving the non-director employee stock benefit plan and approving an outside auditor. The fourth one was the first I've directly encountered, although I've heard of such resolutions previously:

04 . DISSOCIATION FROM THE 2006 AND ALL FUTURE SO-CALLED "GAY GAMES"
Directors Recommend: AGAINST
__ For __ Against __ Abstain

I voted against this resolution. While I'm not convinced that sponsorship of any sporting event actually enhances shareholder value in a meaningful way (unless it is a direct manufacturer of goods used in that particular sport), I see this kind of resolution as a means of encouraging homophobic elements, creating momentum to a less tolerant society and an opening to future resolutions to do away with domestic partner benefits, equal employment treatment and more. I'm happy the current directors urged voting against the resolution, although I wish I could know more about their particular motivation... I'd like to think it's about workplace equality rather than, say, simple resistance to outside interference in their personal fiefdom.

Has anyone else directly encountered resolutions like this? I'm curious is there is a centrally organized campaign against the Gay Games in particular, as opposed to the usual ultra-rightist swipe against all persons not white, male, straight, rich & Republican.

Comments

[jwg.livejournal.com]

In some companies it is relatively easy for a stockholder to get a resolution onto the agenda for the annual meeting; Kraft may be one such company. If you got one of those thick reports that most people always throws out, it might show how that resolution was introduced.

Doesn't Kraft make some sort of sports bar - Balance I think?

[bjarvis.livejournal.com]

The company has a long list of food products... it's possible that they have a sports bar or other stuff in their inventory. I'll have to dig deeper to see if I can determine from where this resolution came.

[billeyler.livejournal.com]

Whoa! What a thing to put out to stockholders...at least everyone is AWARE of it, but I'd be worried, too. The AFA strikes again.

[bjarvis.livejournal.com]

I have no idea which way this resolution will go. At least the board is advising against it, which may carry weight with major institutional investors. I'll have to keep an ear to the ground to hear the final results.

[rsc.livejournal.com]

Well, it also means that that's how they'll vote the shares of people who don't bother to send in their proxies.

Stockholder Activism

[zzbear.livejournal.com]

Just wait till I file my own shareholder resolution request with FM!