MASTERCARD INCORPORATED | Report on cost-benefit analysis of diversity and inclusion efforts at MASTERCARD INCORPORATED

Status
0.50% votes in favour
AGM date
Previous AGM date
Proposal number
10
Resolution details
Company ticker
MA
Lead filer
American Conservative values ETF (ACVF)
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that Mastercard issue a public report prior to December 31, 2023, omitting confidential and privileged information and at a reasonable expense, detailing a cost vs. benefits analysis of Mastercard’s Global Diversity & Inclusion efforts. A summation of this report should subsequently be included in the next annual update of Mastercard’s Global Diversity & Inclusion Report.
Whereas clause
"We view Mastercard as being organized to provide the best quality goods and services to its customers while maximizing the return to the investors who fund the Company. As with any corporate initiative, prioritizing diversity comes with a cost. It’s clear that Mastercard’s Diversity & Inclusion program (D&I) is a major strategic initiative and as shareholders we feel the 2021 Global Inclusion Annual Report1 lacks a complete analysis of the quantified net benefit to shareholders, costs, and risks and is thus incomplete. Given the substantial resources committed to the program, as well as its visibility and importance, as shareholders we feel its net benefit should be measured and quantified using sound financial analysis. Without establishing such a full business justification, the program’s benefit to shareholders, as well as its sincerity and motives are in doubt.
The quoted statements below are excerpts from Mastercard’s 2021 Global Inclusion Annual Report and are included to denote the size, scope, and importance of its Global Diversity & Inclusion program.
Merit E. Janow, Board Chair “Engaging diverse perspectives is a critical way that we can address today’s challenges and create tomorrow’s opportunities. Our commitment to inclusion is aimed at advancing our business, engaging our people and supporting the societies we serve.”
Randall Tucker, Chief Inclusion Officer “An inclusive workplace that champions positive social impact inside and outside of its walls is not a nice-to-have – it’s a necessity. Diversity, equity and inclusion, if done right, can help organizations
fully harness the power of their greatest asset – their people – to meet and exceed business goals and customer expectations. Diversity, Equity and Inclusion, or DEI, is a refinement exercise, one that will ultimately take a good company to great.”
Michael Fraccaro, Chief People Officer “A best place to work is a place where the best people choose to be. The kind of place where professionals from all backgrounds feel welcome, included and free to be themselves and fulfill their greatest potential. Where they can see our shared purpose in their work – and be inspired by that work and by each other.”"
Supporting statement
"Supporting Statement
Shareholders recommend that the report evaluate any risks, benefits and costs to the company associated with Mastercard’s Global Diversity & Inclusion program, initiatives, policies, and training, alongside a valuation of the programs corresponding implicit benefit. In its discretion, the board’s analysis may include any costs or effects on employee morale and cohesion, hiring, retention, and productivity, etc. (collectively the components of “competitive advantage”) Presented in an objective quantifiable manner which will allow a cost benefit analysis. The Report should be calculated with the most recent annual reporting periods data."

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Kutxabank Gestion SGIIC SAU. For
Anima Sgr Against The company provides sufficient disclosure on the benefits of its
diversity, equity, and inclusion efforts. In particular, the company discusses the benefits of diversity and inclusion in the board's statement, in its Form 10-K, and on its website. Through its committees, the board provides oversight of the company's human capital management, along with its processes to manage risks.
Rothschild & co Asset Management Against

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