Amazon hit with investor resolutions at shareholder meeting
More shareholders are demanding corporate accountability from Amazon
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Amazon will face a record 14 resolutions challenging its policies over the treatment of workers during the company's annual shareholder meeting on Wednesday.
The jump in the quantity of resolutions highlights the increase in environmental, social and corporate governance-based investing, leading more shareholders to demand corporate accountability.
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The labor group that did not secure enough votes from Amazon.com Inc warehouse workers in Alabama to form a union said on Monday the hearing on its objections to the election is set to start on May 7, citing a government filing. (AP Photo/Bebeto Matthews, File / AP Newsroom)
The uptick also demonstrates modifications under securities regulators appointed by President Joe Biden, which have made it easier for investors to file proposals and more challenging for companies to persuade regulators that the resolutions should not be put up for a vote among shareholders.
Amazon's record for these resolutions at an S&P 500 company will soon be overtaken when Google parent company Alphabet faces 17 on June 1, according to research firm Insightia.
About 10 of the shareholder resolutions Amazon investors will vote on involve worker rights and other "social" issues, including demands that the company report on how it treats its warehouse workers, while the other ones request things like a review of Amazon's plastic usage.
FILE PHOTO: Logos of Amazon and Amazon Prime are pictured on vehicles outside the Amazon Fulfilment Centre in Altrincham, near Manchester, Britain, November 26, 2021. (REUTERS/Carl Recine/File Photo / Reuters Photos)
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Amazon recommended that company investors vote against all the resolutions, arguing in its proxy statement that it has already addressed a number of the concerns of a proposal. The resolutions are nonbinding, but companies still often take action if they are supported by 30%-40% of the votes.
Proxy adviser Institutional Shareholder Services has suggested that investors vote in favor of eight of the proposals and Glass Lewis supports seven.
Amazon boxes are seen stacked for delivery in the Manhattan borough of New York City, January 29, 2016. (REUTERS/Mike Segar/File Photo) (Reuters Photos)
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British mutual life, pensions and investment company Royal London Asset Management Ltd. said it will vote for at least six of the resolutions, the company’s head of responsible investment, Ashley Hamilton Claxton said.
British asset managers Legal & General Investment Management and Schroders Plc both indicated they will vote for at least some resolutions at Amazon's meeting.
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Reuters contributed to this report.