New York State Comptroller Files Diversity Proposals

Thomas DiNapoli is calling for more accountability from portfolio firms regarding corporate diversity, equity and inclusion.




New York State Comptroller Thomas DiNapoli has filed several shareholder proposals seeking to improve corporate accountability for diversity, equity and inclusion measures at several portfolio companies held by the state’s $242.3 billion pension fund.

The proposals were filed with Universal Health Services Inc., Brinker International Inc., Humana Inc., Elevance Health Inc., Centene Corp., Molina Healthcare Inc., Activision Blizzard Inc., Pinterest and Wells Fargo & Co.

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The proposals DiNapoli filed at Universal Health Services and Brinker International ask the companies to disclose employee recruitment, retention and promotion rates, and to break down pay by gender, race, ethnicity, sexual orientation, age, disability and veteran status.

The proposals sent to Humana and Elevance Health call on the companies to produce reports that analyze racial and ethnic disparities in health-care outcomes. DiNapoli is seeking detailed information on the extent of racial and ethnic disparities, as well as information about any impediments to collecting the data and what the companies are doing to eliminate the disparities. However, DiNapoli withdrew the proposal with Humana after it agreed to publish a report identifying and addressing racial and ethnic health disparities.

Activision Blizzard, Pinterest and Wells Fargo received proposals asking them to publicly report on their efforts to prevent harassment and discrimination, including the number of pending complaints; the number and dollar amounts of settlements; and the number of enforceable contracts that contain concealment clauses restricting discussion of harassment or discrimination. The proposals at Pinterest and Wells Fargo were co-filed by New York City Comptroller Brad Lander and three of the New York City Retirement Systems’ funds.

DiNapoli had also refiled a shareholder proposal with Chipotle seeking an independent audit of the restaurant chain’s practices related to civil rights, racial equity, diversity and inclusion and how these affect the company’s business. However, he withdrew the proposal after Chipotle announced it launched an independent third-party audit analyzing its impact on civil rights, equity, diversity and inclusion.

“We encourage the fund’s portfolio companies to ensure diversity, equity and inclusion throughout their businesses not just because it is the right thing to do, but because they will be better positioned to prosper in the long-term,” DiNapoli said in a release. “As a major investor, focused on safeguarding our pension fund’s long-term value, we call on portfolio companies to adopt best practices that benefit their bottom line.”

DiNapoli said he is also writing to New York State Common Retirement Fund portfolio companies for information about board and workforce DEI policies and practices. The letters will be sent to 75 of the largest Russell 1000 Index companies that lack sufficient board diversity, according to the pension fund’s proxy voting guidelines. Companies set to receive the letter include JPMorgan Chase & Co., Costco Wholesale Corp., Netflix Inc., Citigroup Inc., Moderna Inc., Dell Inc., and Caesars Entertainment Inc..

According to NYCRF proxy voting guidelines, the fund will vote against:

  • All incumbent board nominees at companies with no board directors identifying as an underrepresented minority;
  • All incumbent nominating committee nominees when a board has just one director identifying as an underrepresented minority;
  • All incumbent nominating committee nominees at companies that do not disclose the self-identified individual racial/ethnic diversity of their board directors; and
  • All incumbent nominating committee nominees at companies that do not explicitly consider both gender and racial/ethnic diversity in their search for directors.

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New Bill Would Tax Individual Investors to Extend Social Security Solvency

Bill from Senators Sanders and Warren aims to make Social Security solvent for 75 years and to increase benefits, especially for lower-income workers and retirees.



The Social Security Expansion Act, introduced by Senators Bernie Sanders, I-Vermont, and Elizabeth Warren, D-Massachusetts, aims to make Social Security solvent through the end of the 21st century, while also enhancing benefits.

The bill, introduced last week, would create a tax of 12.4% on investment income for individuals making $200,000 or more and married couples making $250,000 or more, matching the combined employee and employer payroll rates.

The bill would also make all income greater than $250,000 subject to the full Social Security payroll tax rate; currently, income greater than $160,200 is not subject to the full payroll tax rate. Under the bill, income between $160,200 and $250,000 would not be taxed differently at first, but the $160,200 threshold would be allowed to rise normally until it reaches $250,000, projected to happen in 2035. At that point, all income would be subject to the full payroll rate. Additionally, any income greater than $250,000 would not be counted for benefit calculation purposes.

Since the bill would raise taxes, it must be formally introduced first in the House of Representatives. Sponsored in the House by Representatives Jan Schakowsky, D-Illinois, the bill was referred to the House Committee on Ways and Means on Tuesday. The bill has 26 co-sponsors in the House, as of today, all of whom are Democrats. Republicans control the House, and the Committee on Ways and Means is chaired by Representative Jason Smith, R-Missouri.

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A statement from Sanders’ office said the bill would make Social Security solvent for at least the next 75 years, based on a study conducted by Stephen Goss, the chief actuary at the Social Security Administration.

Goss’ report explained that the bill would change the cost-of-living index used to calculate Social Security benefit increases from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the Consumer Price Index for the Elderly (CPI-E). The report estimated that the cost-of-living adjustment would increase by “0.2 percentage points per year on average” as a result.

According to the Bureau of Labor Statistics, the CPI-E is a statistic which weighs inflation to account for the spending patterns of those aged 62 and older, such as their higher proportional spending on healthcare. The Bureau warned that this statistic has certain limitations, such as a smaller sample population, and currently has no official usage.

According to a factsheet for the bill, it would also increase the Special Minimum Benefit to 125% of the poverty line, “or over $18,000 for a single worker who had worked their full career.”

The bill would also increase the first income-percentage “bend point” from 90% to 95%. This means that, going forward, 95% of the first $1,115 in monthly wages (for 2023, indexed to inflation) would count toward Social Security benefits, up from 90%. This has the effect of frontloading benefit increases such that low-income workers benefit proportionally more from them.

Sanders’ office estimates that the annual Social Security benefit would increase on average by $2,400 a year.

The Senators propose the bill shortly after some Republicans during the State of the Union address called President Joe Biden  a “liar” for saying they were threatening to cut Social Security and Medicare to reduce the national debt. The risk of future retirees seeing reduced Social Security payments due to lack of funding has been a policy topic for years, with the Congressional Budget Office warning last December that the trust fund payments may be depleted by 2033, resulting in a 23% cut in planned benefit payments in 2034.

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