CORPORATIONS AGREE TO DISCLOSE CONTRIBUTIONS

NEW YORK CITY PENSIONS WIN CORPORATE ADOPTION OF POLITICAL DISCLOSURE REQUIREMENTS

Comptroller Liu Calls for Similar Disclosure by More Corporations

NEW YORK, NY - New York City Comptroller John C. Liu announced yesterday that three major companies -- AES Corporation, Altria Group and Humana, Inc. -- have adopted shareholder resolutions submitted by the New York City Pension Funds requiring strict disclosure of political contributions of corporate funds. The United States Supreme Court recently ruled to remove the ban on corporate spending for political campaigns and elections. 

"Throughout the years, corporate donations have often been aligned with the personal interests of executives at the expense of the economic interests of shareholders," Comptroller Liu said. "As major shareholders, the New York City Pension Funds have long argued that these donations can be problematic and that accountability and transparency are good for both shareholders and the companies in which we invest.  Public Advocate Bill de Blasio recently called for greater disclosure, and I join him in this demand to better protect the long-term value of our City's pensions." 

Comptroller Liu added, "In this new age of campaign spending, America's largest corporations ought to provide the full picture for corporate boards, the investing community and the general public.  Only then can the health of a corporation be fully evaluated.  And, now that the Supreme Court has opened the floodgates for corporate America to pour hundreds of millions into elections, there is an unprecedented need for public companies to disclose their political spending and strengthen board oversight." 

Collectively, the Funds have 10,167,819 shares in the three companies.  These shares have a collective value of over $204 million. 

The resolution states that the companies provide a semi-annual report disclosing: 

•             Policies and procedures for political contributions and expenditures (both direct and indirect) made with corporate funds;

•             Monetary and non-monetary political contributions and expenditures not deductible under section 162 (e)(1)(B) of the Internal Revenue Code, including contributions or expenditures on behalf of political candidates, political parties, political committees and other political entities organized and operating under 26 USC Sec. 527 of the Internal Revenue Code;

•             An accounting of the Company's funds that are used for political contributions or expenditures; and

•             Identification of the person or persons in the Company who participated in making the decisions to make the political contribution or expenditure.  

Furthermore, the report shall be presented to each company's board of directors' audit committee or other relevant oversight committee and posted on the company's website to reduce costs to shareholders. 

In addition to the three companies, the New York City Pension Funds have submitted the resolution to Burlington Northern Santa FE, Charles Schwab Corporation, DTE Energy Company, Norfolk Southern Corporation, Regions Financial Corporation, Sprint Nextel Corporation, Union Pacific Corporation, Bank of America, and Coventry Health Care.

The New York City Pension Funds are the: New York City Employees' Retirement System, Teachers' Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and Board of Education Retirement System.

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