DiNapoli: Portfolio companies need to publicly disclose political spending

August 12, 2024 Brooklyn Eagle Staff

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STATEWIDE — AS INVESTORS AND CONSUMERS CHOOSE THE BUSINESSES WHERE THEY WILL SHOP OR BUY STOCK based on their own political or ethical values, companies’ public disclosure of their political spending has come to the forefront. State Comptroller Thomas P. DiNapoli, trustee of the New York State Common Retirement Fund, reported on Monday, Aug. 12, that three portfolio companies agreed to publicly disclose their political spending while proposals at three other companies won significant support from shareholders. The agreements were reached with casino operator Caesars Entertainment Inc., delivery service DoorDash Inc. and personal finance company SoFi Technologies.

DiNapoli’s proposal would provide investors with transparency into whether companies are using corporate funds to influence the political process in a way which can adversely impact their reputation, value and bottom line. DiNapoli also called on 16 companies, including Tesla Inc., Domino’s Pizza Inc. and Garmin Ltd. requesting similar comprehensive disclosure of political spending. The proposals filed by the Fund asked the companies to publicly report monetary and nonmonetary contributions and expenditures (direct and indirect) to any campaign for or against a candidate, or to influence the public for an election or referendum, as well as their policies on making these types of political expenditures. Corporations face legal, reputational and financial risks when making political contributions and expenditures, particularly when they financially support candidates and political causes that may not align with a company’s stated values or business strategy.

Since the 2010 U.S. Supreme Court’s Citizens United ruling striking down certain restraints on corporate political spending, DiNapoli has made it a priority to engage the Fund’s portfolio companies in disclosing their political spending.

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