Quanta Services | Lobbying Expenditures Disclosure at Quanta Services

Status
Withdrawn
AGM date
Resolution details
Company ticker
PWR
Lead filer
SEIU Pension Plans Master Trust (Delisted)
Resolution ask
Report on or disclose
ESG theme
  • Governance
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
Service Employees International Union has filed the following resolution. This will be updated in the lead filer field as soon as possible.

The stockholders of Quanta Services Inc. (Quanta) request the preparation of a report, updated annually, disclosing: 1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2. Payments by Quanta, including any joint venture in which Quanta owns an interest, that are used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, including in each case the amount of the payment and the recipient. 3. Description of management’s and the Board’s decision-making process and oversight for making payments described in section 2 above. For purposes of this proposal, a grassroots lobbying communication is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation, and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. Indirect lobbying is lobbying engaged in by a trade association or other organization of which Quanta is a member. Both direct and indirect lobbying and grassroots lobbying communications include efforts at the local, state, territorial and federal levels. The report shall be presented to the board’s Governance and Nominating Committee and posted on Quanta’s website.
Supporting statement
Quanta does not fully disclose to shareholders the requested information about the company’s lobbying policies, procedures and actions. We believe that the need for greater transparency is underscored by recent events involving Quanta and a joint venture, LUMA Energy, in which Quanta owns a 50% interest and which Quanta’s Form 10-K describes as operationally integral to our operations.1 In June 2020 LUMA was awarded a 15-year contract to operate, maintain and modernize Puerto Rico’s electric transmission and distribution system in the wake of Hurricane Maria. This award came after a procurement process that began in early 2019 when Puerto Rico authorities issued a request for proposals seeking bids for this contract.2 The regulations state that there shall be no lobbying relating to the proposal,3 yet Quanta’s federal lobbying activities skyrocketed after the request for proposals, going from $40,000 in 2018 to $280,000 in 2019, $320,000 in 2020 and $210,000 in the first three quarters of 2021.4 Quanta’s 2019 lobbying reports identify expenditures on items such as funding or disaster repairs (for infrastructure and utilities) in Hurricane impacted areas (Harvey and Maria).5 These reports do not tell the full story, however. In October 2020, it was reported that LUMA had hired a legislative consulting firm for $17.4 million; however, neither this firm nor any other had registered to lobby in Puerto Rico, and details were sparse.6 LUMA resisted all calls for disclosure until after an arrest warrant was issued for LUMA’s CEO based on a failure to comply with court-mandated disclosure.7 Only then were any records disclosed.8 We believe that this experience underscores the need for more hands-on board oversight and disclosure.

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