ABBVIE INC. | Lobbying Expenditures Disclosures at ABBVIE INC.

Status
27.03% votes in favour
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
ABBV
Lead filer
Zevin Asset Management
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
Health Care
Company HQ country
United States
Resolved clause
RESOLVED, the stockholders of AbbVie 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 AbbVie 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. AbbVie’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 point 2 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 AbbVie is a member. Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels. The report shall be presented to the Public Policy and Sustainability Committee and posted on AbbVie’s website. 
Supporting statement
SUPPORTING STATEMENT: Full disclosure of AbbVie’s lobbying activities and expenditures is needed to assess whether AbbVie’s lobbying is consistent with its expressed goals and stockholder interests. AbbVie spent $63,850,000 between 2013 – 2022 on federal lobbying. AbbVie lobbies at the state level, spending over $2.5 million on lobbying in California from 2013 – 2022. AbbVie also lobbies abroad, spending between €1,000,000 – 1,249,999 on lobbying in Europe for 2022. 
Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.1 AbbVie reportedly gave nonprofits over $300 million in 2018.2 Unlike many of its peers, AbbVie fails to disclose its payments to trade associations and social welfare groups (SWGs), or the amounts used for lobbying, to stockholders. AbbVie discloses membership in the Chamber of Commerce, which has spent over $1.8 billion on lobbying since 1998. AbbVie’s disclosure omits several trade associations that lobby including the Healthcare Distribution Alliance and Healthcare Institute of New Jersey and all SWGs, including the Alliance for Patient Access. 3 
AbbVie’s lack of disclosure presents reputational risk when its lobbying contradicts company public positions. AbbVie states it supports more affordable medicines yet has drawn scrutiny for lobbying “to kill lower drug prices during pandemic”4 and funding “ads attacking prescription drug bill — after hiking prices up to 470%.”5 
AbbVie believes in addressing climate change, yet the Chamber reportedly has been a “central actor” in dissuading climate legislation over a two-decade period.6 And while AbbVie does not belong to the controversial American Legislative Exchange Council,7 it is represented by the Chamber, which sits on its Private Enterprise Advisory Council.8 
AbbVie should expand its disclosure to benefit investors seeking information about the company. 

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