The Vote Roundup: Walgreens Boots’ public-health impact, Costco’s abortion cover, and more
Stay updated on the latest AGMs coming up from mid-January through to early February.
The Vote Roundup returns for this first week of 2023. While the UK workforce will have just begun to return to the office — or not, due to rail strikes -, shareholder resolutions are already gaining momentum this year.
Are Walgreens Boots’ tobacco sales hurting shareholder profits by impacting public health?
Illinois-based pharmacy company Walgreens Boots Alliance faces two shareholder resolutions at its upcoming AGM.
One of those, submitted by Sisters of St. Francis of Philadelphia, asks the company to report on the public health costs of its tobacco sales. The Catholic group argues that by selling tobacco, Walgreens Boots is impacting general public health, which in turn weakens the wider economy. This will hurt the returns of its shareholders, who are largely diversified.
Walgreens Boots responded by highlighting that only 12% of shareholders voted in favour of a similar proposal last year. The company insists that it is already helping people to stop smoking and that it only sells tobacco in its North American stores.
Shareholders attending the pharmacist’s January AGM will also vote on another shareholder resolution on Chair independence, as well as on the re-election of its Board and the approval of its $17.3 million CEO pay package.
Reproductive-health concerns could cost Costco
Sustainable investing firm Arjuna Capital has asked Costco to report on the risk that restrictive US-state reproductive rights policies pose to the business, and how it plans to minimise these risks.
The investment firm highlighted that the increasingly limited access to abortion in America could drive women away from the workplace.
However, Costco defended its existing efforts to support reproductive health, highlighting their employee health plans which already cover abortion care. The wholesaler also criticised Arjuna Capital’s resolution as being too broad and bringing no added benefit to the company.
Costco’s AGM will take place on the 19th of January.
Other AGMs to keep on your radar
British retailer WH Smith plc will hold its AGM on January 18th, with Annette Court set to formally become the company’s new Chair after being appointed Chair Designate last September. Eyes will also be on the company’s Say on Pay vote after 46% of shareholders voted against its executive pay practices last year due to the company’s use of furlough money.
Imperial Brands, the tobacco company behind brands like Davidoff and Rizzla, is set to hold its AGM on February 1st. Some of the resolutions that shareholders can vote on include electing the company’s nine-person Board, and approving the company’s pay report, which includes a £5.7 million pay package for the CEO.
Meanwhile, Bath-based Future plc, the holding company that houses media outlets such as Marie Claire and TechRadar, will hold its AGM on February 8th. Particularly notable is the vote to approve Future’s updated pay policy, which was triggered because the company failed to gain majority shareholder support for its Say on Pay last year. One of the proposed changes is a reduction to the CEO’s maximum potential bonus.
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