Resolved clauseShareholders request that Las Vegas Sands Corp. (Las Vegas Sands) report on the effectiveness of the Company's diversity, equity, and inclusion efforts to create a workplace where all employees can contribute to the Company’s success. This disclosure should be done at reasonable expense, exclude proprietary information, and provide quantitative metrics for diversity, hiring, promotion, and retention rates of employees, including data by gender, race, and ethnicity.
Whereas clauseGender and racial discrimination is prohibited under the Civil Rights Act of 1964. Research indicates that investors benefit from companies with more diverse management. As examples:
McKinsey studies have consistently found that companies with higher diversity in corporate leadership are more likely to outperform peers on profitability. This includes a 39 percent greater likelihood of outperformance for companies in the top quartile for gender or ethnic representation in their executive teams, versus those in the bottom quartile.[1] Research from Whistle Stop Capital and As You Sow reviewed the manager diversity of over 1,600 companies. Statistically significant positive correlations were to many key financial performance indicators, including: return on equity, return on invested capital, revenue growth, and, as illustrated above, share price performance.[2]
A 2024 meta-analysis found that companies with diversity and inclusion initiatives experience a range of benefits that include increased innovation, enhanced employee engagement and satisfaction, and improved decision-making.[3]
Importantly, researchers have found that in an uncertain political and economic climate, more diverse teams demonstrate greater adaptability.[4]
Companies need to protect their workplace against discrimination; and investors must have meaningful data to monitor their effectiveness in doing so. Unfortunately, studies have also shown that diverse employees face barriers in recruitment, hiring,[5] and promotion.[6]
As of its filing, Las Vegas Sands had not yet released its consolidated EEO-1 form, best practice in diversity data reporting. Nor had the company shared sufficient hiring, promotion, or retention data to assess whether it will be able to build, utilize, and maintain successful management teams.
More than two-thirds of the S&P 500 and almost half of the Russell 1000 have released, or have committed to release, their consolidated EEO-1 forms. Companies that release or have committed to release more diversity and inclusion data than Las Vegas Sands include, but are not limited to, AvalonBay Communities, Jones Lang LaSalle, and Simon Property Group.
Additional information about this request is available at https://whistlestop.capital/las-vegas-sands.
Supporting statementQuantitative data is sought so that investors can assess and compare the effectiveness of companies’ efforts to ensure meritocratic workplaces. It is advised that this content be provided through existing sustainability reporting; an independent report is not requested.