ITT Corporation | Political Contributions at ITT Corporation

Status
Filed
AGM date
Previous AGM date
Proposal number
4
Resolution details
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 HQ country
United States
Resolved clause
Resolved, Shareholders request that ITT Corporation prepare
and semiannually update a report, which shall be presented to
the pertinent board of directors committee and posted on the
Company’s website, disclosing the Company’s:
(a) Policies and procedures for making electoral contributions
and expenditures (direct and indirect) with corporate funds,
including the board’s role (if any) in that process; and
(b) Monetary and non-monetary contributions or expenditures
that could not be deducted as an “ordinary and necessary”
business expense under section 162(e)(1)(B) of the Internal
Revenue Code, including (but not limited to) contributions or
expenditures on behalf of candidates, parties, and committees
and entities organized and operating under section 501(c)(4)
of the Internal Revenue Code, as well as the portion of any
dues or payments made to any tax-exempt organization (such
as a trade association) used for an expenditure or contribution
that, if made directly by the Company, would not be deductible
under section 162(e)(1)(B) of the Internal Revenue Code.
The report shall be made available within 12 months of the
annual meeting and identify all recipients and the amount paid
to each recipient from Company funds. This proposal does not
encompass lobbying spending.
Supporting statement
Supporting Statement: As a long-term shareholder of ITT, I support transparency and
accountability in corporate electoral spending. A company’s
reputation, value, and bottom line can be adversely impacted
by election spending conducted through third-parties.
The Conference Board’s 2021 “Under a Microscope” report
warns “a new era of stakeholder scrutiny, social media, and
political polarization has propelled corporate political activity—
and the risks that come with it—into the spotlight. Political
activity can pose increasingly significant risks for companies,
including the perception that political contributions—and other
forms of activity—are at odds with core company values.”
ITT discloses a policy regarding direct corporate contributions
to candidates and parties but this is deficient because ITT’s
policy does not address all direct and indirect corporatefunded election-related spending, including payments to
501(c)(4) social welfare organizations, payments to 527
groups,
payments to trade associations, independent expenditures,
and payments to influence the outcome of ballot measures.
Information on indirect electoral spending through 501(c)(4)
groups and trade associations cannot be obtained by
shareholders unless the Company discloses it. This proposal
asks the Company to disclose all of its electoral spending,
direct and indirect. This would bring ITT in line with a growing
number of leading companies, including Sensata
Technologies Holding plc (ST), General Electric Co., and
Fortive Corp., which present this information on their
websites.
Without knowing the recipients of ITT’s political dollars
shareholders cannot sufficiently assess whether ITT’s
election-related spending aligns with its policies and core
values. Thus it will be a best practice for ITT to expand its
political spending disclosure.

Filed by John Chevedden

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