Amazon shareholders introduce record number of proposals for a second-consecutive year

According to the company’s proxy statement, which was published on Thursday, environmental, social, and governance (ESG)-focused investors are pushing for additional changes at the e-retail giant Amazon (NASDAQ:AMZN), which is currently facing 18 shareholder recommendations, breaking its previous record of 15 proposals set in 2022.

The recommendations address various issues, such as a demand to alter Amazon’s executive compensation structure, a verification that no human rights violations are committed using Amazon technologies, and increased reporting of Amazon’s animal welfare standards.

Investors must receive at least 53% of the vote to prevail. The findings are not legally binding, and the Amazon board is not compelled to act on the recommendations.

After the U.S. Department of Labor’s Occupational Safety and Health Administration discovered workplace safety violations in six warehouses nationwide, activist investor Tulipshare requires another vote this year to force the e-retailer to conduct an independent investigation into the safety of its warehouses.

According to Tulipshare’s plan, the report would go into depth about the “impact of (Amazon’s) policies, management, performance metrics, and targets.” In 2022, 44% of investors voted in favour of Tulipshare.

Tulipshare owns 13 shares or about $7,000 in Amazon stock.

The proposal from Tulipshare interests Natasha Lamb, managing partner and co-founder of Arjun Capital, in particular because “safety improvements need to be made.”

She said seeing the firm receive 44% votes in 2022 was “pretty remarkable.”

In 2022, 22% of shareholders voted in favour of Arjun Capital’s proposal that Amazon publish data on median wage discrepancies by race and gender. The proposal has been revised and uploaded for this year’s proxy vote.

Amazon’s board has recommended shareholders vote against each of the 18 proposals. Last year, investors’ votes rejected all of the record 15 shareholder proposals.

Requests for feedback regarding the rise in shareholder proposals have yet to receive a prompt response from Amazon.

The proposals will be voted on during Amazon’s annual meeting on May 24.