New York City Comptroller Brad Lander welcomed a report released by Glass Lewis, an independent proxy advisor, which recommended that Amazon shareholders vote ‘no’ to re-electing Board Director Judith McGrath.
Last month, a group of institutional investors led by Lander launched a “vote no” campaign calling on Amazon shareholders to oppose the re-election of Directors Judith McGrath and Daniel Huttenlocher for failing to provide independent oversight of workforce issues at the company.
“Glass Lewis’ recommendation to shareholders to express dissatisfaction with the Company’s response to human capital management issues by voting against a key director responsible for oversight shows broad and growing support for our proposal,” said Comptroller Lander in a statement May 11. “As one of the nation’s largest employers, Amazon’s treatment of its employees has profound implications across millions of households, our portfolios, and our economy. Amazon shareholders need qualified and accountable directors who respond to investor concerns rather than rubberstamp management’s inadequate health and safety practices, and repeated interference with workers’ rights to form a union, contrary to its own policy and U.S. labor laws.”
In an April 21 letter filed with the U.S Securities and Exchange Commission (SEC), the group of investors highlighted the lack of oversight of the company’s human capital management, also citing the directors’ inability to ensure Amazon’s commitment to protect and advocate for workers’ safety and health, uphold its own policies on human rights and freedom of association and address unsustainable worker turnover.
Leaders from other states also approved of the decision to encourage a no-vote for re-election.
“We are witnessing a pattern of oversight and management failures at Amazon, including high rates of injury, rapid employee turnover and anti-union activity,” said Illinois Treasurer Michael Frerichs. “I am also deeply concerned about the tragic loss of life that occurred at the Amazon facility in Edwardsville, Illinois, where six people died after a tornado struck, which is the subject of investigations into inadequate safety protocols. Now is the time for more responsive and engaged leadership on Amazon’s board.”
The Glass Lewis report, released May 6, found that Amazon had not adequately provided a safe and healthy environment for its workers, and had also failed to provide a report on efforts to ensure safety and well-being.
“We believe that the board has not appropriately addressed potential shareholder concern regarding these increasing human capital risks and its assessment of such risks, and could do more to mitigate the Company’s potential reputational damage as it relates to its human capital management practices,” the report read. “Given that the prevalence of human capital management risks and potential related reputational risks to the Company may impact shareholder value, we believe shareholders should oppose the election of director McGrath as the chair of the leadership development and compensation committee to signal dissatisfaction with the Company’s response to these issues.”
However a spokesperson from Amazon disagreed with the findings.
“We disagree with and are disappointed by Glass Lewis’s recommendations that stem from misinformation and sensationalized media reports about Amazon,” the spokesperson said to amNew York. “The Leadership Development and Compensation Committee of our board takes its role very seriously and has overseen human capital management during a time when Amazon has regularly received recognition as a top employer, including LinkedIn’s Top Companies to Work For and Drucker Institute’s Best Managed Companies, and emerged as a leader in compensation and benefits for hourly employees. The committee also oversaw our safety report, Delivered with Care, which details a 43% decrease in our lost time incident rate; our companywide diversity, equity, and inclusion goals; the expansion of our upskilling programs; and our programs that support our ambition to be Earth’s Best Employer. Amazon has identified and is systematically addressing what we believe are the top 100 employee experience pain points, and we have committed to undertake a racial equity audit for our nearly one million U.S. hourly employees. Employee safety and wellbeing is integral to everything we do, as demonstrated by our relentless focus on health and safety training, engagement with employees, and refinement of our processes to help make Amazon an even better place to work.”
Last updated 5/11/2022 1:13 pm
