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

By Arriana McLymore

NEW YORK (Reuters) – E-retail giant Amazon (NASDAQ:) is facing 18 shareholder proposals, beating its 2022 record of 15 proposals, as environmental, social and governance (ESG)-focused investors push for more changes in the company, according to Amazons’ proxy statement released on Thursday.

The proposals cover a variety of topics including a request to change Amazon’s executive compensation package, an audit to ensure that Amazon’s technologies are not used for human rights violations and additional reporting of Amazon’s animal welfare standards.

Shareholders need at least 53% of votes to win. However, the results are non-binding and Amazon’s board is not required to move forward on the suggestions.

Activist investor Tulipshare is forcing another vote this year, hoping to push the e-retailer to conduct an independent report on its warehouse safety after the U.S. Department of Labor’s Occupational Safety and Health Administration found workplace safety violations in six warehouses across the country.

The report would detail the “impact of (Amazon’s) policies, management, performance metrics, and targets,” according to Tulipshare’s proposal. Tulipshare secured 44% of investors’ votes in 2022.

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

Natasha Lamb, managing partner and co-founder of Arjun Capital, said she is particularly interested in Tulipshare’s proposal because “safety improvements need to be made.”

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

Arjun Capital’s proposal for Amazon to report on median pay gaps across race and gender received 22% of votes in 2022 and has been refiled and posted for this year’s proxy vote.

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

Amazon did not immediately respond to requests for comment on the increase in shareholder proposals.

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