September 14, 2023
Nike investors voted against two shareholder-led proposals during the sportswear giant’s annual meeting on Tuesday, according to a preliminary company tally.
One of the resolutions, filed by Massachusetts-based investment adviser Arjuna Capital, called on Nike to provide more data on pay equity for female and minority employees.
The second, filed by shareholder advocacy group Tulipshare, called on the company to issue a report on whether its supply chain policies effectively address Nike’s stated equity goals and human rights commitments.
The proposals require more than 50% of shareholder votes to win, but Nike is not required to adopt them. The company will disclose the final vote count in a future filing with the U.S. Securities and Exchange Commission.
Arjuna’s resolution on pay equity reporting failed for the second time since 2021 despite support from proxy advisory firm Institutional Shareholder Services, which in August recommended that investors vote in favor of the proposal.
Nike has faced increasing pressure to demand greater transparency in its supply chain.
More than a dozen investors are calling on Nike to pay garment workers in Cambodia and Thailand who a labor rights group says lost wages after Covid-19 factory closures, according to a Sept. 7 letter. September addressed to Nike CEO John Donahoe.
Nike told Reuters it has not sourced products from the Cambodian factory since 2006 and also found “no evidence” that it owed back wages to workers in Thailand.
© Thomson Reuters 2023 All rights reserved.