NVR, Inc. | DEI efforts at NVR, Inc.

Status
30.85% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Lead filer
New York State Common Retirement Fund
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 HQ country
United States
Resolved clause
RESOLVED: Shareholders request that NVR, Inc. (NVR) report to shareholders on the outcomes of the Company's diversity, equity, and inclusion efforts in its human capital management strategy, by providing comprehensive quantitative metrics and data on progress toward its goals. This includes disclosure of its EEO-1 Report no later than 60 days after the date of its submission to the EEOC as well as recruitment, retention, and promotion rates, pay data of employees by gender, race, ethnicity, sexual orientation, age, disability and veteran status and consolidated pay and hours-worked reporting required by the California Department of Fair Employment and Housing. The reporting should be done at reasonable expense and exclude proprietary information.
Whereas clause
WHEREAS: In the current environment companies face numerous social and governance risks, including workforce management, that could impact companies' abilities to retain employees in a tight labor market. The importance of workforce management, including diversity, equity and inclusion, is recognized by the Company. The Company's annual report states "Our employees are our most important asset. We are committed to hiring and developing an inclusive workplace with a strong diversity of backgrounds and perspectives. … Our compensation philosophy has been consistent for over 25 years and is designed to motivate and retain highly qualified and experienced employees."
Diversity and inclusion can provide a competitive advantage. Studies have found that diverse and inclusive workplaces "encourag[e] varied perspectives that can better anticipate shifts in consumer preferences, reduc[e] costly turnover, and increas[e] productivity and morale," in addition to other benefits.1 Further, analysis from Just Capital found that companies that disclose EEO-1 data (or equivalent data) saw 2.4 percent higher returns than peer companies that did not release EEO-1 data.
As intangible assets increasingly drive corporate value creation, investors seek a better understanding of human capital management strategy and performance. The Fund believes that disclosure of EEO-1 data helps investors assess the implementation of their portfolio companies' commitments to greater inclusion not just in a given year, but over time, and among different job categories. A lack of consistent disclosure of human capital practices makes it difficult for investors to integrate this key factor in their analysis of company risk and value.
NVR has not shared sufficient information for investors to determine the effectiveness of its commitments and overall human capital management programs. A report such as the one requested would assist shareholders in assessing whether NVR is bringing new talent into the company, whether these employees are retained, how effectively their talents are nurtured and whether there is overall improvement in its management of the workforce.
Supporting statement
SUPPORTNG STATEMENT: Quantitative data is sought so that investors are able to compare, understand, and assess the effectiveness of companies' diversity, equity, and inclusion programs.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.