Investors Score a Win, Push Visa and Others to Disclose Pay Gap

By Neanda Salvaterra, October 21, 2022

This year for the first time, a majority of investors at two companies — Lowe’s and The Walt Disney Company — voted in favor of pay gap data disclosure resolutions backed by investors including Arjuna Capital. The impact and ESG investment firm withdrew a similar proposal at Visathis week, after the company agreed to voluntarily publish information about wage disparities. 

The home improvement retailer Lowe’s, Disney and the credit card giant Visa join a select few U.S. businesses such as Citigroup, American Express and MasterCard that have agreed to disclose pay gap data, as stakeholders continue to push companies to address pay disparities for especially women and minorities, whose compensation has historically lagged their white male counterparts, according to federal statistics. 

Companies and board directors should expect more investor agitation on this front, according to several market players, including Natasha Lamb, a managing partner at Arjuna.

“Racial and gender pay equity is more important today than ever. We remain in a competitive labor market, and even with a recession looming, companies are seeking to hire, retain and promote diverse talent,” said Lamb, who noted that Arjuna will be asking more companies to disclose pay gap data in the lead-up to next proxy season. “We will be engaging at least half a dozen more portfolio companies this year.”

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