Sustainable Investment Firms Actively Engaged with Apple to Advocate for Pay Equity Disclosure
Pax World Management LLC, investment adviser to Pax World Funds (http://paxworld.com) and a pioneer in the field of sustainable investing, and Arjuna Capital (http://arjuna-capital.com), a sustainable investment advisor, in early March 2016 applauded Apple on its commitment to pay parity. Pax World and Arjuna Capital had earlier filed shareholder proposals, and have been in active dialogue with Apple on pay equity for the past several months. At Apple’s Annual Meeting in February, CEO Tim Cook announced the results of the company’s gender pay assessment and stated that the company is committed to closing the pay gap.
In September 2015, Pax World and Arjuna Capital filed shareholder proposals requesting that Apple disclose the percentage pay gap between male and female employees and the steps it was taking to address it. Pax World and Arjuna Capital subsequently withdrew the proposals in November 2015 after Apple committed to a constructive dialogue with the firms to explore specific actions the company could take to address pay equity.
“It became clear in our initial conversations with Apple that the company was fully committed to understanding and managing pay equity across its workforce,” said Heather Smith, Lead Sustainability Research Analyst, Pax World. “We commend Apple for its willingness to engage in a constructive dialogue and ultimately disclose the results of its pay analysis. We look forward to continuing our conversation with Apple, and expect that the company will continue to actively work to close the pay gap.”
“Apple is a leader and we would expect no less from the tech giant,” said Natasha Lamb, Director of Research & Shareholder Engagement at Arjuna Capital. “Gender pay equity is critical to creating a diverse and innovative workforce and tech companies can no longer sit this discussion out – they have to speak up for fair pay. It’s not simply a question of fairness; it is a question of breaking down the structural bias that keeps women in the back seat and business from reaching its full potential.”
The tech industry has come under intense scrutiny in recent years for its lack of gender diversity in its workforce, spanning all professional levels – from entry level positions to C-suite and boardroom executives. Research indicates that pay equity can be a key part of a successful diversity strategy[1] and is an important factor when companies are working to attract, retain and motivate talented employees.[2] Given the increasing national conversation and attention around gender diversity, Pax World and Arjuna Capital believe that managing pay equity and committing to pay parity is a meaningful next step toward achieving greater diversity.
“It is our hope that other companies, particularly those in the tech sector, will follow Apple’s lead and adopt similar reporting policies,” said Smith.
Pax World is engaged in numerous shareholder advocacy initiatives aimed at closing the gender pay gap, including co-filing shareholder proposals at eBay and Amazon requesting the disclosure of the results of pay equity assessments. Pax World also recently wrote to 31 technology companies held across its mutual funds, asking for information about how the companies are addressing pay equity and that they publicly disclose the results of a company pay analysis. In February, Pax Ellevate Management, a joint venture of Pax World and Ellevate Asset Management, sent a petition for rulemaking to the SEC urging the agency to require public companies to disclose gender pay ratios on an annual basis.
Arjuna Capital, in partnership with Baldwin Brothers Inc., has filed eight resolutions at technology companies asking them to commit to closing the gender pay gap. Facebook, Microsoft, Amazon, Google, Expedia, Adobe and eBay face 2016 proxy season votes and other direct shareholder pressure to follow the lead now taken by Apple to commit to gender pay equity.
About Pax World Management LLC
Pax World Management LLC, investment adviser to Pax World Funds, is a pioneer in the field of sustainable investing. Pax World integrates environmental, social and governance (ESG) research into its investment process to better manage risk and deliver competitive long-term investment performance. For over 45 years, Pax World has made it possible for investors to align their investments with their values and have a positive social and environmental impact. Today, its platform of sustainable investing solutions includes a family of mutual funds, as well as separately managed accounts.
About Arjuna Capital
Arjuna Capital is a sustainable investment advisor offering diverse, sustainable, profitable and high-impact investments to build and preserve our clients\’ wealth and influence sustainable change through enlightened engagement in the capital markets.
You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. For this and other information, call 800.767.1729 or visit www.paxworld.com for a fund prospectus and read it carefully before investing.
ALPS Distributors, Inc., is not affiliated with Arjuna Capital or Pax World Management LLC. / Pax World Funds are distributed by ALPS Distributors, Inc. Member FINRA. / PAX005952 (3/17)
ARTICLE NOTES:
[1] Mercer, “When Women Thrive Business Thrive,” November 2014 http://www.mmc.com/content/dam/mmc-web/Files/Gender-Diversity-When-women-thrive-businesses-thrive-Mercer.pdf
[2] Europa, “Why is it important to tackle the gender pay gap?” August 2015 http://ec.europa.eu/justice/gender-equality/gender-pay-gap/tackle/index_en.htm
