PORTSMOUTH, N.H. March 22, 2017 – Pax World Management LLC, investment adviser to Pax World Funds and a pioneer in the field of sustainable investing, has successfully withdrawn pay equity shareholder resolutions at five companies in the financial services, technology and telecommunications sectors following their commitments to take proactive steps toward enhancing pay equity disclosure.
Pax filed shareholder proposals at Goldman Sachs, BNY Mellon, Verizon, AT&T and Qualcomm, requesting that the companies disclose the percentage pay gap between male and female employees and take steps to address it. At the time of the filings, none of the companies had any public disclosure related to pay equity. Pax withdrew its proposals when the companies agreed to take steps to enhance pay equity disclosure.
“In our discussions with these companies, it became clear that they are genuinely committed to ensuring that employees are paid equitably, and all agreed to disclose information on the steps they are taking to ensure pay equity,” said Heather Smith, Lead Sustainability Research Analyst, Pax World. “They view diversity and inclusion as an integral part of their business strategy, which is a smart approach for any company that wants to attract the best talent and gain a competitive edge in the global marketplace.”
Pax has filed or co-filed nine shareholder resolutions on pay equity. So far, three of these companies, Apple, eBay and Amazon, publicly announced that they have no gender pay gap. In February 2016, Pax Ellevate Management, a joint venture of Pax World and Ellevate Asset Management, sent a petition for rulemaking to the SEC urging the agency to require public companies to disclose gender pay ratios on an annual basis. Pax World has also written to 32 technology companies held across its mutual funds asking for information about how the companies are addressing pay equity and that they publicly disclose the results of a company pay analysis.
“Our work doesn’t stop here – we are committed to ongoing conversations with these companies to advance pay equity. The role of business has never been more critical in advancing gender equality, and all companies would be well served by proactively analyzing their pay structures by gender, race and ethnicity,” said Smith. “Pay parity represents one step towards closing the overall gender gap in the workforce and helps position companies to take advantage of the entire workforce.”
Pax World Management LLC, investment adviser to Pax World Funds and creator of the Pax Global Women’s Leadership Index, is a pioneer in the field of sustainable investing. Pax World integrates environmental, social and governance (ESG) research into its investment process to better manage risk and deliver competitive long-term investment performance. Across all of its funds, Pax World withholds support from all-male corporate board slates, and working with other institutional investors, actively engages with companies to embrace gender diversity on their boards and advance women in the workplace. For over 45 years, Pax World has made it possible for investors to align their investments with their values and have a positive social and environmental impact. Today, its platform of sustainable investing solutions includes a family of mutual funds, as well as separately managed accounts.
Pax World Funds are distributed by ALPS Distributors, Inc. Member FINRA. ALPS Distributors, Inc. is not the distributor for the Separately Managed Accounts. Pax World Management LLC and ALPS Distributors, Inc. are unaffiliated.
As of 2/28/17, Goldman Sachs was 1.2% of Pax Balanced Fund, 2.3% of the Pax Large Cap Fund, and 1.0% of the Pax Core Bond Fund; BNY Mellon was 0.7% of the Pax Balanced Fund, 1.4% of the Pax Large Cap Fund and 0.4% of the Pax Core Bond Fund; Verizon was 0.2% of the Pax Balanced Fund, 0.4% of the Pax Core Bond Fund, 1.6% of the Pax ESG Beta Dividend Fund, 2.6% of the Pax ESG Beta Quality Fund, 1.1% of the Pax Global Women’s Index Fund; Qualcomm was 0.1% of Pax Balanced Fund, 0.7% of the Pax ESG Beta Dividend Fund, and 0.5% of the Pax ESG Beta Quality Fund; AT&T was 0.9% of the Pax Balanced Fund, 1.9% of the Pax Large Cap Fund, 2.1% of the Pax ESG Beta Dividend Fund, 1.4% of the Pax ESG Beta Quality Fund, and 1.4% of the Pax Global Women’s Index Fund; eBay was 0.1% of the Pax Balanced Fund and 0.3% of the Pax Core Bond Fund; Apple was 2.2% of the Pax Balanced Fund, 5.0% of the Pax Large Cap Fund, 0.4% of the Pax Core Bond Fund, 3.2% of the Pax ESG Beta Quality Fund; Amazon was 1.6% of the Pax Balanced Fund, 3.5% of the Pax Large Cap Fund, 2.0% of the Pax ESG Beta Dividend Fund and 2.2% of the Pax ESG Beta Quality Fund. Holdings are subject to change.