N.Y. Pension Prods Companies to ‘Confront Institutional Racism,’ Or Else

Link: https://www.bloomberg.com/news/articles/2021-02-25/n-y-pension-prods-companies-to-boost-diversity-or-face-a-vote


The New York State Common Retirement Fund, the third-largest U.S. public plan, said it’s pressing companies to boost their ethnic and gender diversity, and will vote against directors who fail to act.

“Companies must root out racial inequality, just as they would root any other systemic problem that puts their long-term success at risk,” New York State Comptroller Thomas P. DiNapoli said in a statement Thursday. “Corporate America must join in the national reckoning over racial injustice and confront institutionalized racism.”

The New York pension, which has $248 billion of assets, plans to file shareholder proposals supporting increased diversity on corporate boards. It also will seek better disclosures about the gender and ethnic breakdown of companies’ employees. The fund said it will vote against board members who ignore these requests.

Author(s): Saijel Kishan

Publication Date: 25 February 2021

Publication Site: Bloomberg