New York State Common asks 7 companies to disclose political spending

New York State Common Retirement Fund, Albany, filed shareholder resolutions with seven companies asking them to disclose direct and indirect spending on political causes as well as resolutions to two other companies asking them to prepare a new policy on contributing to third-party organizations.

It also filed shareholder resolutions with two other companies asking them to enact policies that require trade associations and other third parties receiving company contributions to report publicly on how the money is being used and who is receiving it.

"The divisiveness in American political discourse has magnified significant risks for corporations that contribute to political causes," said Thomas P. DiNapoli, state comptroller and sole trustee of the $233.2 billion pension fund, in a news release Jan. 6.

"It raises the question of whether any corporate political donations are in shareholders' interests," Mr. DiNapoli said. "At a minimum companies should voluntarily disclose how much and where they are putting their resources."

The direct/indirect spending proposals (and the pension fund's holdings) were sent to Caesars Entertainment ($7 million); Match Group ($14 million); Penn Entertainment ($13 million); SoFi Technologies ($4 million); Warner Bros. Discovery ($32 million); Zoom Video Communications ($20 million); and Zillow Group ($6 million in stock and $4 million in convertible debt). All investments were as of Sept. 30.

As an example, the Zoom proposal, similar to the other proposals, asks the company "to disclose all of its electoral spending, including payments to trade associations and other tax-exempt organizations which may be used for electoral purposes — and are otherwise not public."

The pension fund document said Zoom should provide a report, updated semiannually, "disclosing the company's policies and procedures for making, with corporate funds or assets, contributions and expenditures (direct or indirect)."

The contribution information should cover any company efforts to "participate or intervene in any campaign on behalf of (or in opposition to) any candidate for public office, or influence the general public, or any segment thereof, with respect to an election or referendum," the document said.

The pension fund seeks the identity of the recipient, the amount paid to each and the name and title of the company executive "responsible for decision-making."

The two shareholder proposals seeking information about contributions to third parties were sent to the Coca-Cola Co. ($394 million) and the Travelers Cos. ($71 million). All investments were as of Sept. 30.

The letter to Coca-Cola, similar to that for Travelers, excluded lobbying from its request. It asked for information on "political activities," which the pension fund defined as "influencing or attempting to influence the selection, nomination, election, or appointment of any individual to a public office."

It also covered "supporting a party, committee, association, fund, or other organization organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures to engage in" political activities.

The pension fund "is in discussions with some of the companies regarding potential agreements," said the news release, which didn't provide details.