Autonation, Inc. | Political Contributions at AutoNation, Inc.

Status
27.73% votes in favour
AGM date
Previous AGM date
Proposal number
6
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 AutoNation provide a report, updated semiannually, disclosing the Company's:
1. Policies and procedures for making, with corporate funds or assets, contributions and expenditures (direct or indirect) to (a) participate or intervene in
any campaign on behalf of (or in opposition to) any candidate for public office, or (b) influence the general public, or any segment thereof, with
respect to an election or referendum.
2. Monetary and non-monetary contributions and expenditures (direct and indirect) used in the manner described in section 1 above, including:
a. The identity of the recipient as well as the amount paid to each; and
b. The title(s) of the person(s) in the Company responsible for decision-making.
The report shall be presented to the board of directors or relevant board committee and posted on the CompanyÕs website within 12 months from the date
of the annual meeting. This proposal does not address spending on lobbying.
Supporting statement
Supporting Statement
As a long-term shareholder of AutoNation, I support transparency and accountability in corporate electoral spending. This includes any activity
considered intervention in a political campaign under the Internal Revenue Code, such as direct and indirect contributions to political candidates, parties, or
organizations, and independent expenditures or electioneering communications on behalf of federal, state, or local candidates.
A companyÕs reputation, value, and bottom line can be adversely impacted by political spending. The risk is especially serious when giving to trade
associations, Super PACs, 527 committees, and Òsocial welfareÓ organizations - groups that routinely pass money to or spend on behalf of candidates and
political causes that a company might not otherwise wish to support.
The Conference BoardÕs 2021 ÒUnder a MicroscopeÓ report details these risks, recommends the process suggested in this proposal, and warns Òa 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.Ó
Publicly available records show AutoNation has contributed at least $700,000 in corporate funds since 2010 election.
This proposal asks AutoNation to disclose all of its electoral spending, including payments to trade associations and other tax-exempt organizations
which may be used for electoral purposes - and are otherwise undisclosed. This would bring our Company in line with a growing number of leading
companies, including MacyÕs Inc., Ford Motor Co., and Ralph Lauren Corp., which present this information on their websites. Without knowing the recipients of our company's political dollars shareholders cannot sufficiently assess whether our company's election-related
spending aligns or conflicts with its policies on climate change and sustainability, or other areas of concern. Please support this important governance reform.

Filed by John Chevedden

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