The New York State Common Retirement Fund (NYSCRF) has urged shareholders of DraftKings Inc. to vote in favor of Proposal No. 4, which calls for the disclosure of certain political contributions by the company. The proposal is set to be voted on at the annual meeting on May 13, 2024. NYSCRF, which is relying on an exemption for this solicitation, highlights the risks associated with undisclosed political spending, including legal, reputational, and financial risks. DraftKings has reportedly contributed at least $400,000 in corporate funds to political causes since 2010, but has not provided shareholders with a detailed account of these expenditures. The lack of transparency prevents investors from assessing the alignment of such spending with the company's business strategy and values. The proposal emphasizes...Show More

The New York State Common Retirement Fund (NYSCRF) has urged shareholders of DraftKings Inc. to vote in favor of Proposal No. 4, which calls for the disclosure of certain political contributions by the company. The proposal is set to be voted on at the annual meeting on May 13, 2024. NYSCRF, which is relying on an exemption for this solicitation, highlights the risks associated with undisclosed political spending, including legal, reputational, and financial risks. DraftKings has reportedly contributed at least $400,000 in corporate funds to political causes since 2010, but has not provided shareholders with a detailed account of these expenditures. The lack of transparency prevents investors from assessing the alignment of such spending with the company's business strategy and values. The proposal emphasizes that disclosure is a widely adopted best practice and does not seek to limit the company's political spending, but rather to inform shareholders. DraftKings has not engaged with the NYSCRF on this proposal and has a 0.0% score on the 2023 Center for Political Accountability-Zicklin Index, which measures political disclosure and accountability, compared to higher scores by its peers. The NYSCRF argues that adopting the proposal would mitigate risks and align with best practices for corporate governance.