Fastenal Company | EEO-1 Report Disclosure Policy at Fastenal Company

Status
Filed
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
FAST
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
Shareholders request that the Board of Directors adopt a policy requiring Fastenal Company ('Fastenal') to publicly disclose its Consolidated EEO-1 Report, a comprehensive breakdown of its workforce by race, ethnicity and gender (the 'EEO-1 Report'), which Fastenal is required to submit annually to the U.S Equal Employment Opportunity Commission (EEOC). The policy should require that Fastenal annually disclose its EEO-1 Report on its website and in its proxy statement."
Supporting statement
Fastenal's website asserts: ""Because we value people, we prioritize safety, we foster a culture of diversity, equity, and inclusion, and we strive to improve communities and the planet.... [W]e remain strongly committed to promotion from within, creating pathways for employees to branch out, build rewarding careers, and become leaders in our organization."" We also believe that employees of color and women can contribute to improved company performance. A peer-reviewed 2024 study titled 'Impact of Diversity and Inclusion on Firm Performance: Moderating Role of Institutional Ownership' analyzed 8,089 firm-year observations from globally-listed firms using ordinary least squares regression. The study found that companies with higher diversity and inclusion scores tend to perform better. The EEO-1 Report breaks down a company's U.S. workforce by race, ethnicity and gender according to 10 employment categories, including senior management, defined to incorporate individuals within two reporting levels of the CEO. Fastenal's 2024 ESG Report discloses aggregate percentages for the category of ""minority"" employees separated by gender but the table does not include any job-specific categories. Even this partial data, however, is no longer available in the 2025 ESG Report. EEO-1 Report disclosure would provide investors with more consistent information to benchmark Fastenal to its peers, in a decision-useful format, including: • Standardized, quantitative, and reliable data in categories as defined by the EEOC, that is comparable across companies and industries, enabling investors to assess the representation of employees of color and women at various levels of Fastenal; • Specific data on senior management diversity; and • Particularized data that allows investors to assess the representation of specific racial and ethnic groups by gender, such as Black female employees, in a job category - and to make meaningful year-over-year comparisons. Disclosure of its EEO-1 Report is a cost-effective means for Fastenal to demonstrate diversity performance. Fastenal already collects the data and submits it to the EEOC. The proposal neither prevents nor discourages Fastenal from disclosing any other information that management believes reflect its organizational structure or demonstrates its commitment to diversity and inclusion. EEO-1 Report disclosure will bring Fastenal into line with virtually all S&P 100 companies, and nearly 400 of the S&P 500 companies, which disclose or have committed to disclose their EEO-1 Report, including its acknowledged peers, W.W. Grainger, Inc. and IDEX Corporation. Other shareholders have agreed. In 2021, The New York City Pension Funds' EEO-1 shareholder proposals at DuPont and Union Pacific received 84% and 86% support, respectively. Please vote FOR this proposal

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