Ally Financial Inc. | Report on lobbying at Ally Financial Inc.

Status
Omitted
Previous AGM date
Resolution details
Company ticker
ALLY
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 sector
Financials
Company HQ country
United States
Resolved clause
Shareholders request the preparation of a report, updated annually, disclosing:

l . Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.

2. Payments by Ally 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. Ally's membership in and payments to any tax-exempt organization that writes and endorses model legislation.

4. Description of management's and the Board's decision-making process and oversight for making payments described in sections 2 and 3 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 Ally 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 Audit Committee and posted on Ally's website.
Supporting statement
Full disclosure of Ally's lobbying activities and expenditures is needed to assess whether Ally's lobbying is consistent with its expressed goals and stockholders' interests. Ally spent $32 million from 2010 — 2023 on federal lobbying. This does not include state lobbying, where Ally also lobbies but disclosure is uneven or absent.

Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity. [1][2]Ally fails to disclose its memberships in or payments to trade associations and social welfare groups, or the amounts used for lobbying, to stockholders. Ally belongs to the American Bankers Association (ABA), American Financial Services Association, Bank Policy Institute (BPI), Consumers Bankers Association, Mortgage Bankers Association and Structured Finance Association, which together spent $20 million on federal lobbying for 2023.

Ally's lack of disclosure presents reputational risks when its lobbying contradicts company public positions. For example, Ally received favorable press for ending overdraft fees, yet the Consumer Bankers Association directly opposed rules to limit overdraft fees.[3] Ally publicly supports mitigating the impacts of climate change, yet BPI lobbied the Securities and Exchange Commission to weaken proposed climate disclosure rules.[4][5] And while Ally does not belong to or support the American Legislative Exchange Council, which has attacked "woke capitalism," one of its trade associations does, as ABA supported its 2022 annual meeting.

Reputational damage stemming from these misalignments could harm shareholder value. Improved Ally Financial lobbying disclosure will protect the reputation of Ally and preserve shareholder value.

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