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Charles Schwab stockholders to vote on 2 shareholder proposals at annual meeting


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Charles Schwab stockholders to vote on 2 shareholder proposals at annual meeting

Charles Schwab Corp. shareholders will consider two stockholder proposals at their annual meeting on May 15.

The first proposal, brought by three New York City pension funds, would require Schwab to disclose its EEO-1 data, which breaks down its workforce by race and gender.

"The financial services industry, of which the company is a part, is characterized by persistent and pervasive underrepresentation of minorities and women, particularly in senior positions," the shareholders wrote in a statement. Without the disclosure of the EEO-1 data, investors cannot fully evaluate whether the company's diversity efforts are working. Two-thirds of S&P 100 companies do publish the data, the shareholders noted.

Schwab's board recommended voting against the proposal, since making the data public would "cause the company to breach the assurances of confidentiality and privacy" it has made to employees, the board wrote.

The three pension funds — the New York City Employees’ Retirement System, the New York City Police Pension Fund and the New York City Board of Education Retirement System — hold about 930,300 shares.

The second proposal, brought on behalf of shareholder James McRitchie, who holds 100 shares, would require the company to disclose its policies and procedures for making contributions to political campaigns or causes. Doing so would make the influence of corporate political spending more transparent, the shareholder wrote.

Schwab makes "limited, local contributions" to political campaigns, and those funds are overseen by the board's audit committee, the board wrote in response. It recommended that shareholders vote down the proposal.