FEDEX CORPORATION | Lobbying Activity and Expenditure Report

Status
34.70% votes in favour
AGM date
Proposal number
7
Resolution details
Company ticker
FDX
Lead filer
The International Brotherhood of Teamsters (IBT)
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
Resolved, the stockholders of FedEx 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 FedEx used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case
including the amount of the payment and the recipient.
3. FedEx’s membership in and payments to any tax-exempt organization that writes and endorses model legislation.
4. Description of management’s, and the Board’s decision-making process and oversight for making payments described
in section 2 and 3 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 FedEx is a member.
Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and
federal levels.
The report shall be presented to the Nominating & Governance Committee and posted on FedEx’s website.
Whereas clause
“Whereas, full disclosure of FedEx’s lobbying activities and expenditures to assess whether its lobbying is consistent with
FedEx’s expressed goals and stockholder interests.
Supporting statement
FedEx spent over $151 million on federal lobbying from 2010 - 2021. This does not include state lobbying, where disclosure
is uneven or absent. For example, FedEx lobbied in at least 36 states in 2021 and spent $3.14 million lobbying in California from
2010 - 2021. And FedEx lobbies abroad, spending between €800,000 – 899,999 on lobbying in Europe for 2020.
FedEx fails to disclose its memberships and payments to trade associations and social welfare organizations, or the
amounts used for lobbying, including grassroots. Companies can give unlimited amounts to third party groups that spend
millions on lobbying and undisclosed grassroots activity. These groups may be spending “at least double what’s publicly
reported.”1 FedEx sits on the board of the Chamber of Commerce and belongs to the Business Roundtable, which have
together spent over $2.0 billion on lobbying since 1998, and the RATE Coalition, a social welfare organization. FedEx’s
memberships drew attention after these groups launched a “massive lobbying blitz” against raising corporate taxes.2 And
FedEx does not disclose its support for the American Legislative Exchange Council (ALEC).
FedEx’s lack of disclosure presents reputational risks when its lobbying contradicts company public positions. For example,
FedEx believes in addressing climate change, yet the Chamber lobbies to undermine climate regulation. FedEx is committed to
diversity, yet groups asked FedEx to cut ties with ALEC “because of its voter restriction efforts.”3 And while FedEx has drawn
scrutiny for avoiding federal taxes,4 its trade associations are lobbying against raising corporate taxes to fund infrastructure.
Last year, this proposal received majority support.”
1 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-doublewhats-publicly-reported/.
2 https://www.washingtonpost.com/us-policy/2021/08/31/business-lobbying-democrats-reconciliation/.
3 https://www.thenation.com/article/politics/alec-corporations-democracy/.
4 https://www.commercialappeal.com/story/money/industries/logistics/2021/04/02/fedex-federal-taxes-cares-acttrump-tax-cuts/4851934001/.

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
VidaCaixaFor
Sandbar Asset Management LLPFor

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