18 Apr 2018 Investor Alert: AES, Kraft Heinz and Honeywell Investors Urged to Strike Down String of Liberal Proposals Designed to Co-Opt Corporate Decision-Making
Free Enterprise Project Calls on Shareholders to Reject Anti-Capitalist Resolutions Being Promoted by As You Sow Network
Washington, D.C. – The National Center for Public Policy Research’s Free Enterprise Project (FEP) – the nation’s leading proponent of free-market investor activism – is urging shareholders of the AES Corporation, Kraft Heinz and Honeywell to reject specific shareholder proposals at their upcoming shareholder meetings that are aimed at ceding corporate decision-making to outside liberal organizations known to oppose free enterprise.
On April 19, at the AES Corporation shareholder meeting in Arlington, Virginia, FEP plans to oppose a proposal submitted by Mercy Investment Services. This proposal attempts to bind the company — which produces electricity for more than a dozen countries using multiple methods (including renewable energy sources) — to meet Paris Climate Accord goals that radically impact coal-burning power production. FEP’s statement points out how such regulation has already had devastating results elsewhere, and unfairly disadvantages AES.
On April 23, FEP intends to advocate against a proposal at the Kraft Heinz shareholder meeting in Pittsburgh, Pennsylvania promoted by the left-wing As You Sow network. FEP calls this proposal — which asks the company to report the environmental impact of non-recyclable packaging — an attempt to goad Kraft Heinz into a third-party, non-governmental regulatory regime which could potentially harm shareholder investment and put the company at risk of violating its fiduciary responsibility.
Also on April 23, at the Honeywell shareholder meeting in Morris Plains, New Jersey, another FEP representative plans to speak out against a shareholder proposal co-filed by Azzad Asset Management and Mercy Investment Services. That proposal is a deceptive effort to defund free-market and pro-business organizations such as the American Legislative Exchange Council (ALEC) and Business Roundtable.
“Investors need a wake-up call when it comes to liberal ideology infiltrating corporate America,” said National Center General Counsel and FEP Director Justin Danhof, Esq., who plans to attend the Honeywell meeting. “One way this is occurring is through shareholder resolutions such as the ones we are set to oppose over the next few days. Leading investment firms such as BlackRock and proxy advisor services such as Institutional Shareholder Services (ISS) have recently shifted course and begun to support the anti-capitalist themes pushed by the As You Sow network. We are going to push back.”
“Left-wing activists are trying to leverage their investments to promote a political agenda that will harm businesses and harm people. We at the National Center consider it our duty to stand up for the free market and the well-being of consumers,” said National Center Vice President David W. Almasi, who plans to attend the AES and Kraft Heinz meetings. “These radicals can cry their crocodile tears, but the bottom line is that their agenda will hurt those they claim to care about the most. That’s why we are rallying investors to stop them.”
Launched in 2007, the National Center’s Free Enterprise Project focuses on shareholder activism and the confluence of big government and big business. Over the past four years alone, FEP representatives have participated in over 100 shareholder meetings – advancing free-market ideals about health care, energy, taxes, subsidies, regulations, religious freedom, food policies, media bias, gun rights, workers’ rights and other important public policy issues. As the leading voice for conservative-minded investors, FEP annually files more than 90 percent of all right-of-center shareholder resolutions. Dozens of liberal organizations, however, annually file more than 95 percent of all policy-oriented shareholder resolutions and continue to exert undue influence over corporate America.
FEP activity has been covered by media outlets including the New York Times, Washington Post, USA Today, Variety, the Associated Press, Bloomberg, Drudge Report, Business Insider, National Public Radio and SiriusXM. FEP’s work was prominently featured in Wall Street Journal writer Kimberley Strassel’s 2016 book The Intimidation Game: How the Left is Silencing Free Speech (Hachette Book Group).
Danhof’s latest commentary, on the recent Walt Disney shareholder meeting where his actions resulted in Joy Behar’s public apology for suggesting Christianity is a mental illness, is available here.
The National Center for Public Policy Research, founded in 1982, is a non-partisan, free-market, independent conservative think-tank. Ninety-four percent of its support comes from individuals, less than four percent from foundations and less than two percent from corporations. It receives over 350,000 individual contributions a year from over 60,000 active recent contributors. Sign up for email updates here. Follow us on Twitter at @NationalCenter for general announcements. To be alerted to upcoming media appearances by National Center staff, follow our media appearances Twitter account at @NCPPRMedia.