Eli Lilly and Co, a major pharmaceutical company, is facing a shareholder proposal for increased transparency in its lobbying activities. The SEIU Benefit Plans Master Trust, which is relying on an exemption, has submitted written materials to encourage shareholders to vote for greater disclosure of Eli Lilly's direct and indirect lobbying expenditures at the upcoming annual shareholder meeting on May 6, 2024. The proposal, identified as Item #6 on the proxy card, requests that the company publish an annual report detailing its lobbying policies, procedures, and expenditures, including payments to tax-exempt organizations that endorse model legislation. Despite Eli Lilly's claim of sufficient current disclosures, the SEIU Trust argues that the company's disclosures are inadequate, particularly regarding state, foreign, and...Show More

Eli Lilly and Co, a major pharmaceutical company, is facing a shareholder proposal for increased transparency in its lobbying activities. The SEIU Benefit Plans Master Trust, which is relying on an exemption, has submitted written materials to encourage shareholders to vote for greater disclosure of Eli Lilly's direct and indirect lobbying expenditures at the upcoming annual shareholder meeting on May 6, 2024. The proposal, identified as Item #6 on the proxy card, requests that the company publish an annual report detailing its lobbying policies, procedures, and expenditures, including payments to tax-exempt organizations that endorse model legislation. Despite Eli Lilly's claim of sufficient current disclosures, the SEIU Trust argues that the company's disclosures are inadequate, particularly regarding state, foreign, and indirect lobbying activities. The Trust highlights issues with the accessibility and completeness of state lobbying information on Eli Lilly's Political Participation Website, the absence of disclosures for Puerto Rico where the company has significant operations, and the lack of information on international lobbying that could pose risks under the Foreign Corrupt Practices Act. Additionally, the Trust points out Eli Lilly's undisclosed involvement with controversial groups like ALEC and indirect lobbying through patient advocacy organizations. The Trust asserts that full disclosure is necessary for shareholders to assess risks and the alignment of lobbying activities with long-term shareholder interests, emphasizing the financial impact of corporate reputation on market capitalization and revenue.