NewsPersonal Care

Arjuna Capital presses P&G for greater pay gap transparency

Investment firm pushed for both adjusted and unadjusted pay gap disclosures at P&G’s annual meeting, following a similar initiative at Kroger

Arjuna Capital, an investment firm known for advocating corporate transparency on issues like pay equity, is urging Procter & Gamble (P&G) to disclose both adjusted and unadjusted pay gaps based on gender and race. The proposal, which is non-binding, will be put forward at P&G’s upcoming annual shareholder meeting.

The firm seeks to measure pay disparities by comparing the earnings of non-minority males to those of females, as well as white men to minority male and female workers. This follows the firm’s success in advocating for similar disclosures at Kroger, where the grocery chain agreed to include both adjusted and unadjusted pay gap figures in its annual Environmental, Social, and Governance (ESG) report.

While P&G has already committed to disclosing adjusted pay gaps, which consider factors such as job title and experience, the company is resisting the call to report unadjusted figures. According to P&G, unadjusted pay gaps, which do not account for these variables, could be misleading and fail to reflect its commitment to equity. Despite this, Arjuna Capital argues that reporting both types of data is necessary to fully understand the disparities within the workforce.

P&G’s CEO, Jon Moeller, stated that while the company recognizes a slight pay gap on an adjusted basis, he believes the proposal from Arjuna Capital is “unnecessary” and might detract from the company’s ongoing long-term efforts to address pay equity. On an adjusted basis, P&G reports that women at the company earn 0.94% less than men, while multicultural groups earn 0.5% less than white men.

Arjuna Capital counters that pay inequities, especially across race and gender, remain a significant concern for companies and society at large. The firm argues that addressing these disparities can enhance a company’s stock performance and return on equity. “Managing pay equity is not just about fairness; it’s about business performance”, Arjuna Capital noted in its proposal.

This proposal is one of the few shareholder initiatives on P&G’s ballot this year, apart from routine votes on board members, audit firm appointments, and executive compensation. If the Kroger precedent is any indication, P&G may face increasing pressure from shareholders to follow suit and provide more comprehensive pay gap data.

Source
USA Today
Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button