Letter to Travelers Shareholders: Vote Yes for Workplace Diversity Proposal
May 18, 2018 // Boston, MA – Trillium Asset Management published a letter to Travelers Companies (NYSE: TRV) shareholders encouraging them to vote in favor of a proposal on the Company’s 2018 proxy. This proposal requests the company to disclose workforce diversity metrics as well as a description of policies and programs focused on increasing gender and racial diversity in the workplace.
The letter provides the following rationale for voting ‘Yes’:
1. Travelers does not disclose any quantitative workforce diversity data
2. Evidence finds that greater workforce diversity may lead to better business outcomes
3. Providing detailed workforce information may contribute positively to company culture
4. The proposal’s request is not cost prohibitive
A McKinsey & Company report found that companies in the top quartile for gender or racial ethnicity are more likely to financially outperform national industry medians. Specifically, companies with greater ethnic diversity were 35 percent more likely to outperform. For every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) rise 0.8 percent. Without detailed workforce diversity information investors cannot accurately evaluate the company’s commitment to diversity and progress over time.
Read the letter to shareholders.
Trillium Asset Management is the oldest independent investment advisor devoted exclusively to sustainable and responsible investing. With over $2.6 billion in assets under management, Trillium has been managing equity and fixed income investments for high net worth individuals, foundations, endowments, religious institutions, and other nonprofits since 1982. A leader in shareholder advocacy and public policy work, Trillium’s goal is to deliver both impact and performance to its investors.
Important Disclosure: The information provided is not a recommendation to buy or sell the security mentioned. The security was selected on an objective basis for illustrative purposes and does not represent all of the securities purchased, sold or recommended. It should not be assumed that investments in the security has been or will be profitable.