Last Updated: April 14, 2023, 01:48 IST
E-retail giant Amazon is facing 18 shareholder proposals, beating its 2022 record of 15 proposals, as environmental, social and governance (ESG)-focused investors push for more changes in the company, according to Amazons’ proxy statement released on Thursday.
The proposals cover a variety of topics including a request to change Amazon’s executive compensation package, an audit to ensure that Amazon’s technologies are not used for human rights violations and additional reporting of Amazon’s animal welfare standards.
Shareholders need at least 53% of votes to win. However, the results are non-binding and Amazon’s board is not required to move forward on the suggestions.
The number of shareholder proposals across industries has grown since 2020. However, support for those proposals fell from 2021 to 2022, according to a PWC report.
Activist investor Tulipshare is forcing another vote this year, hoping to push the e-retailer to conduct an independent report on its warehouse safety after the U.S. Department of Labor’s Occupational Safety and Health Administration found workplace safety violations in six warehouses across the country.
The report would detail the “impact of (Amazon’s) policies, management, performance metrics, and targets,” according to Tulipshare’s proposal. Tulipshare secured 44% of investors’ votes in 2022.
Tulipshare owns 13 shares or about $7,000 in Amazon stock.
Natasha Lamb, managing partner and co-founder of Arjun Capital, said she is particularly interested in Tulipshare’s proposal because “safety improvements need to be made.”
She said that seeing the firm receive 44% votes in 2022 was “pretty remarkable.”
Arjun Capital’s proposal for Amazon to report on median pay gaps across race and gender received 22% of votes in 2022 and has been refiled and posted for this year’s proxy vote.
Amazon’s board has recommended shareholders vote against each of the 18 proposals. Last year, all of the record 15 shareholder proposals were rejected by investors’ votes.
Although Amazon has a record number of proposals on the ballot this year, this is not the most proposals that have been submitted by shareholders to the company. Amazon can challenge submissions with the Securities Exchange Commission or negotiate with investors to provide audits and reports outside of the annual shareholder meeting.
The proposals will be voted on during Amazon’s annual meeting on May 24.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)