MASTERCARD INCORPORATED | Lobbying disclosure at MASTERCARD INCORPORATED

Status
28.30% votes in favour
AGM date
Previous AGM date
Proposal number
8
Resolution details
Company ticker
MA
Lead filer
Individual
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
Technology
Company HQ country
United States
Resolved clause
RESOLVED, the stockholders of Mastercard 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 Mastercard 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.Mastercard's membership in and payments to any tax-exempt organization that writes and endorses model legislation.
4.Description of management's decision-making process and the Board's oversight for making payments described in sections 2 and 3 above.
Whereas clause
WHEREAS, full disclosure of Mastercard's lobbying activities and expenditures to assess whether Mastercard's lobbying is consistent with its expressed goals and stockholder interests.
Supporting statement
Supporting Statement
Mastercard spent $43 million on federal lobbying from 2010 – 2021. This does not include state lobbying, where Mastercard lobbied in at least 18 states in 2021. Mastercard also lobbies abroad, spending approximately €900,000 on lobbying in Europe for 2021. Mastercard's lobbying over swipe fees amid surging inflation has attracted media scrutiny. Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.2 Mastercard fails to disclose its payments to trade associations and social welfare groups, or the amounts used for lobbying, to stockholders.
Mastercard belongs to the American Bankers Association (ABA), Business Roundtable, and US Chamber of Commerce, which together spent $105 million on lobbying for 2021, and has drawn attention for funding the controversial nonprofit State Financial Officers Foundation,3 which is attacking so-called woke capitalism.4 And while Mastercard does not belong to the American Legislative Exchange Council, which has drafted anti-woke boycott bills,5 ABA supported its 2022 annual meeting6 and the Chamber sits on its Private Enterprise Advisory Council. Mastercard's lack of disclosure presents reputational risk when its lobbying contradicts company public positions. Mastercard supports addressing climate change, yet the Business Roundtable lobbied against the Inflation Reduction Act7 and the Chamber opposed the Paris climate accord. Mastercard is committed to diversity, equity and inclusion, yet the Chamber lobbied against protecting voting rights.8
I believe it is a risk our company does not disclose its third-party payments, and I urge Mastercard to expand its lobbying disclosure.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For Additional disclosure of the company's direct and indirect lobbying related expenditures would help shareholders better assess the risks and benefits associated with the company's participation in the public policy process.
Rothschild & co Asset Management For
Kutxabank Gestion SGIIC SAU. Against

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