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Shareholder pushes for diversity report at First Republic

A First Republic Bank shareholder has submitted a proposal outlining a diversity report to be prepared by the company.

Trillium Asset Management LLC proposed that the company create a report identifying the percentage of employees in Equal Employment Opportunity Commission-defined job categories by gender and race. The report would also include a description of the policies and programs intended to increase diversity at First Republic.

Trillium is affiliated with the Trillium Small/Mid Cap Fund, which beneficially owns 349 First Republic shares, or a 0.0002% stake.

The investor notes "asset management firms have begun acknowledging the lack of gender diversity in senior roles" and that companies such as Bank of America Corp. and U.S. Bancorp already disclose their related programs, policies and statistics. Trillium additionally cited a McKinsey & Co. report that found ethnically diverse companies to be 35% more likely to outperform.

The First Republic board is reviewing the proposal, a bank spokesman said. In a preliminary document made public by the FDIC, the company included a recommendation that shareholders reject the proposal, noting that the company already reports diversity metrics for senior management and its entire employee base. A proxy statement with a formal recommendation will not be finalized until the beginning of April.

The proposal is up for a shareholder vote at the company's annual meeting May 15.