New York State Comptroller Thomas P. DiNapoli, trustee of the New York State Common Retirement Fund, released the following statement today in response to McDonald’s decision to disclose workforce diversity data and tie executive compensation to the company’s ability to foster inclusion and ensure improved human capital management.
As a result of McDonald’s new policy, DiNapoli and the Fund are withdrawing their shareholder proposal that had asked the company to connect executive compensation to the company’s management of ESG and workforce issues. The Fund owned 1,674,102 shares in McDonald’s valued at $359,229,000 as of December 31, 2020.
“McDonald’s has taken a real step toward protecting its workforce by agreeing to our request that it tie its top executives’ compensation to the diversity of its workforce and the well-being of its employees. Strong human capital management policies like this are important drivers of long-term shareholder value.
“It is my hope that other companies follow McDonald’s example, particularly those corporations where New York state’s pension fund has filed similar shareholder proposals seeking greater attention to, and respect for, their human capital.
“The CoViD-19 pandemic has put the workers who prepare and serve our meals, deliver our purchases, and so much more, on the front lines, at risk of infection even as they struggle to keep our economy moving.
“Corporate America needs to step up and ensure their policies incentivize the treatment of all employees with respect, dignity and equity so that the foundation of our economy remains strong.”
About the New York State Common Retirement Fund
The New York State Common Retirement Fund is the third largest public pension fund in the United States with an estimated $247.7 billion in assets under management as of December 31, 2020. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. The Fund has consistently been ranked as one of the best managed and best funded plans in the nation. The Fund’s fiscal year ends March 31.