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Liu, like DiNapoli, wielding pension power to push corporate behavior

Monday, March 05, 2012 - 10:48 AM

Comptroller Liu sees costs dropping in the future.

Courtesy of the comptroller's office/Paul Brumlik

Embattled New York City Comptroller John Liu announced this morning that the city's pension funds had worked with two companies they invest in to agree to protect workers against sexual orientation and identity discrimination. Like his counterpart at the state level, Comptroller Tomas DiNapoli, Liu is using the city's public pension funds to push forward a political agenda--one of the benefits defenders of the pension systems point to for protecting them.

The companies in the agreement, Dick’s Sporting Goods and Constellation Brands, a large alcoholic beverage distributor, will now not have to put a proposal forward to shareholders to "adopt a written policy barring discrimination based on sexual orientation or gender identity," according to the report.

“These companies are to be commended for upholding basic rights of their employees,” Comptroller Liu said in a statement.  “As long-term shareholders we know that when companies refuse to protect their employees against discrimination, they drive away the best and the brightest. Equal rights in the workplace help ensure that long-term shareholder value is protected and build a more equitable society.”

Last month, Comptroller DiNapoli announced an agreement with three California-based companies to disclose their corporate political contributions. DiNapoli, in an interview with the Empire in January, DiNapoli pointed to the ability of pension funds as vehicles for social change as one of their additional benefits:

“By aggregating that capital, we can not only maximize the power to get superior return,” the Comptroller said. “You also can focus on the other ways in which you can make those companies you invest in be responsible corporate citizens in a way that makes their business model sustainable and profitable.”

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Comments [1]

Larry Littlefield

Those funds certainly haven't done much to ensure that a higher share of corporate profits go to dividends and not executive pay, have they?  The dividend yield is just 2.0%.  The historic average is 4.3%.  It hasn't been near that level for more than 15 years.

They bloviate about whether stock prices are up and down, but that doesn't matter unless you sell.  And if pension funds sell off their assets to pay for the benefits of current retirees, what will they use to pay for the benefits of future retirees?

It's about income.  Corporations have not provided it.  They money has gone to excess executive pay.

Mar. 05 2012 06:31 PM

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