CHARTER COMMUNICATIONS, INC. | Lobbying Expenditures Disclosure at CHARTER COMMUNICATIONS, INC.

Status
22.26% votes in favour
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
CHTR
Lead filer
Service Employees International Union (SEIU)
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
Telecom
Company HQ country
United States
Resolved clause
"RESOLVED, stockholders 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 Charter 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. Charter’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.
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 Charter is a member.
Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, territorial, state and federal levels.
The report shall be presented to the Audit Committee or other relevant oversight committees and posted on Charter’s website."
Supporting statement
"SUPPORTING STATEMENT
Full disclosure of Charter’s lobbying activities and expenditures is needed to assess whether Charter’s lobbying is consistent with its expressed goals and stockholder interests. Charter spent $92,185,000 from 2010 – 2022 on federal lobbying. This does not include state lobbying expenditures, where Charter also lobbies extensively, for example spending over $3.4 million on lobbying in California from 2015 – 2022.
Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.1 Unlike many of its peers, Charter fails to disclose its payments to trade associations and social welfare groups (SWGs), or the amounts used for lobbying, to stockholders. Charter serves on the board of NCTA - The Internet & Television Association, which spent $203,440,000 on lobbying from 2010 – 2022, and supports SWGs that lobby like the RATE Coalition. Charter also does not disclose its contributions to groups which write and endorse model legislation, such as sponsoring the American Legislative Exchange Council (ALEC).2
Charter’s lack of disclosure presents reputational risks when its lobbying contradicts company public positions. For example, Charter states that it is committed to an open internet, yet NCTA has lobbied against net neutrality.3 Charter reportedly ran “a fake consumer group in Maine that’s killing community broadband.”4 As Charter paid zero federal taxes in 2020,5 the RATE Coalition lobbied against raising taxes to pay for health care, education and safety net programs.6 And while Charter is committed to diversity and inclusion, over 300 groups have asked Charter to leave ALEC because of its voter restriction efforts.7
In the last three years, this proposal received majority support of outside stockholders. Charter should expand its lobbying disclosure.
1 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported/ 
2 https://documented.net/reporting/energy-and-pharmaceutical-companies-among-sponsors-of-alec-policy-meeting 
3 https://arstechnica.com/tech-policy/2021/07/isps-spent-235-million-on-lobbying-and-donations-more-than-320000-a-day/. 
4 https://www.techdirt.com/2022/07/12/charters-running-a-fake-consumer-group-in-maine-thats-killing-community-broadband-with-the-help-of-a-democratic-advisor/ 
5 https://www.citizen.org/news/corporations-are-spending-millions-on-lobbying-to-avoid-taxes/ 
6 https://www.washingtonpost.com/us-policy/2021/08/31/business-lobbying-democrats-reconciliation/ 
7 https://www.commoncause.org/press-release/common-cause-fair-fight-action-and-over-300-organizations-call-on-corporations-to-cut-ties-with-alec/ "

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