Anti-DEI Initiatives Increasingly on Agenda for Tech and Telecom Shareholder Votes
Shareholders at major communications, media and tech companies are increasingly grappling with diversity, equity and inclusion questions, as is evident from numerous DEI-related shareholder proposals on the agendas of companies' latest annual meetings. The increased shareholder activism around DEI isn't limited to tech and communications, as the 2025 proxy season is experiencing a jump in proposals seeking to roll back or limit those corporate efforts, according to the Conference Board.
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For example, Verizon's May 22 meeting will see shareholders deciding on an American Family Foundation proposal creating a report to evaluate how the carrier oversees risks related to discrimination against ad buyers and sellers based on their political or religious views or status. Netflix shareholders will decide at their June 5 meeting about a National Center for Public Policy Research (NCPPR) proposal for a report assessing the company's affirmative action initiatives and what kind of discrimination-related risks they pose.
At Disney's annual meeting in March, three shareholder proposals were defeated, including one from NCPPR asking the company to reconsider its participation in the Human Rights Campaign’s Corporate Equality Index due to the “partisan, divisive and increasingly radical criteria." Another rejected proposal was brought by an individual shareholder seeking a report on discrimination against ad buyers due to their political or religious views. Its language was practically identical to Verizon's ad discrimination proposal.
Apple shareholders in February voted against four shareholder proposals, including an NCPPR request that it end DEI programs, policies, departments and goals and a proposal by an individual shareholder criticizing Apple's support of such groups as the Southern Poverty Law Center and seeking an analysis of how Apple's contributions affect its risks related to discrimination against individuals based on their speech or religion.
The Conference Board said anti-DEI proposals have become more common in recent years despite receiving scant support. Their goal is often not to pass but to exert influence and amplify opposition, it added. The most common anti-DEI shareholder proposals include those requesting audits on whether such programs create legal liability, pushing to scale back or eliminate DEI programs, and seeking to include political ideology and viewpoint as protected characteristics in equal employment opportunity policies.
FCC Chairman Brendan Carr has also targeted DEI initiatives at companies the agency regulates (see 2503280038).
Shareholder proposals are typically found at the largest companies and are far less common in companies outside the S&P 500, said Marcel Kahan, a New York University law professor and expert in shareholder voting. They are often the work of a handful of shareholder activists, who are more likely to have shares of big companies, he said. Also playing a role is the fact that such proposals are filed in part for publicity, Kahan added, and shareholders' actions at major companies get more attention, potentially creating momentum for the idea getting adopted at other companies.
Other Proposals Cover Safety, AI
While numerous companies in the communications sphere -- including Tegna, American Tower and T-Mobile -- have no shareholder proposals at their forthcoming annual meetings, there are proposals on an array of issues beyond DEI.
Also before Verizon shareholders at their May meeting are a Trillium ESG Global Equity Fund proposal on how Verizon's lobbying efforts are aligned with its climate targets and commitments, and another from BellTel Retirees calling for a study of the potential hazards related to lead-sheathed cables and conclusions about remediation cost estimates. In addition to the DEI proposal, Netflix shareholders will also decide on one from a Benedictine religious community in Atchison, Kansas, on expanding the company's code of ethics for an inclusive work environment.
Among the nine shareholder proposals on the agenda for Meta's May 27 annual meeting is a Leichtag Foundation request for a report detailing the company's policies and practices in combating hate on its platforms and services, particularly anti-Semitism and anti-LGBTQ+ sentiment. Others before Meta shareholders include a proposal by a variety of faith organizations and investment groups for a report assessing whether and how Meta has improved its performance on child safety, and a National Legal and Policy Center proposal urging an assessment of the risk Meta faces due to unethical or improper use of external data in the development, training and deployment of its AI offerings.
Lumen shareholders will decide at their May 13 meeting about a proposal that only a majority should be needed in any charter or bylaws voting requirements, rather than a supermajority.
Microsoft’s shareholder meeting in December saw the rejection of six proposals, including one from the National Legal and Policy Center on AI risks, similar to the advocacy group's Meta proposal, and an Arjuna Capital Shareholders proposal for a report assessing risks to the company and public from Microsoft's role "in facilitating misinformation and disinformation disseminated or generated via" AI.