According to a ruling by the SEC, Amazon should allow shareholders to vote on a proposal on gender pay equality.
The ruling comes following a proposal submitted to Amazon and other tech firms (including eBay and Intel) by Arjuna Capital, the activist arm of investment firm Baldwin Brothers.
Amazon was the only tech firm whom received it that formally requested SEC permission to omit the proposal, according to Arjuna. It calls for Amazon to report on the difference between male and female pay by October of this year, as well as create a plan to lessen that gap.
There is little hope that said proposal will go anywhere, but getting it onto the board’s official docket for consideration for a firm as large and public as Amazon is considered to be a victory — if a small one.
The SEC found that despite Amazon’s claims that the proposal was “so inherently vague or indefinite” that it was not feasible to put it into practice.
For its part, Amazon has reaffirmed its commitment to women in the workplace, noting that 39 percent of their global workforce is female, as are 24 percent of its managers.
“We’re committed to fairly and equitably compensating all our employees, and we review all employee compensation on at least an annual basis to ensure that it meets that bar,” Amazon said in an emailed statement.
“It’s not simply a social justice issue,” said Natasha Lamb, director of shareholder engagement at Arjuna. “It’s an issue that affects performance, affects the company’s ability to attract and retain top talent.”
Lamb said Arjuna withdrew proposals at Apple and Intel since both firms moved on the issue. eBay shareholders rejected the proposal on gender pay equality on board opposition; Arjuna resubmitted it again this year.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More