from https://teamster.org/news
ISS Recommends Investors Vote FOR Teamster’sSustainability Proposal, Against ‘Say on Pay’
(WASHINGTON) – Leading independent proxy advisor Institutional Shareholder Services (ISS) is recommending investors support a Teamster-sponsored shareholder resolution calling for enhanced disclosure of XPO Logistics Inc.’s (NYSE:XPO) human capital management performance, among other sustainability practices.
ISS is also advising against XPO’s advisory vote on executive pay (the so-called “Say-on-Pay” vote) due to a recent $20 million “mega-grant” to CEO Bradley Jacobs, a pay risk previously flagged by the Teamsters. Coupled with recent controversy over XPO’s workplace practices, the recommendations raise the specter of a contentious annual shareholder meeting when investors meet May 10 at XPO’s Greenwich, Conn. headquarters.
In supporting the Teamster’s sustainability proposal, ISS wrote that such reporting allows shareholders to better evaluate the potential risks, liabilities and opportunities of XPO’s practices and highlighted recent controversy over working conditions at an XPO warehouse operated on behalf of leading UK online clothing company, ASOS plc (LON:ASC).
“Shareholders have every reason to be concerned about workplace practices, when the UK House of Commons’ Business Committee calls your employment contracts ‘exploitative’ and demands a Parliamentary inquiry into working conditions at one of your facilities,” Teamsters General Secretary-Treasurer Ken Hall said.
In a detailed letter to investors, GST Hall also flagged the risks to long-term shareholder value from the company’s business model of labeling drivers independent contractors while treating them like employees. The California Labor Commissioner has called worker misclassification a form of “wage theft” and recently awarded $855,000 to four port and rail drivers working for XPO due to alleged misclassification of the drivers as independent contractors.
“This could be the canary in the proverbial coal mine for XPO shareholders,” Hall said, noting that numerous class action lawsuits were pending. “A sustainability report will allow investors to inspect what potential liabilities or risks to the current business model lie beneath the hood.”
In recommending against the company’s Say on Pay, ISS found a “high concern” for the alignment of pay and performance, noting that CEO Jacobs’ compensation was more than three times that of his peers and had increased nearly 200 percent over the past year – driven largely by a $20 million
“mega-grant” of equity in fiscal 2016. ISS said it was “unclear why the committee made an award of this magnitude,” adding that it was “particularly concerning given that there is no commitment to refrain from making additional grants during the [four-year] measurement period.”
“mega-grant” of equity in fiscal 2016. ISS said it was “unclear why the committee made an award of this magnitude,” adding that it was “particularly concerning given that there is no commitment to refrain from making additional grants during the [four-year] measurement period.”
“This feels like a crowning award for a CEO who still faces profound uncertainty over the underlying economics of his business model,” Hall said. “The board risks overvaluing its executive team and undervaluing its workforce.”
The Teamsters’ sustainability resolution calls for the publication of an annual sustainability report that covers, among other things, the company’s processes, practices and performance regarding human capital management and climate change.
XPO is one of the world’s largest global third-party logistics companies, providing transportation and logistical services to 63 percent of Fortune 100 companies.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.
12 comments:
If I were the ceo, the last thing I would want happen is my employees to unionize. Think about it people, lets do it and watch them backpeddle. Lets give it a try Chicagoland and Milwaukee, lets start the talks today
Paying 89 thousand is pocket change to Bradley. His racking big numbers with the stock market. His living the dream.
I hope all you that turn down the union get everything they promised you. Because in another year you'll be on your knees broke and crying...
The CEO doesn't like xpo truck drivers
The ceo is going to be somewhere other than leading this company in the next year
The ceo will throw us peanuts and collect his fortune while we sit scared to speak out in fear of our laughable job according to his head
Were just his workers til he manages to sell us and cash out in the 10s of millions while we go thru another cost cutting company and ceo....JUST WATCH
On a beach drinking $20 margaritas, wake up coworkers and start talking
Yes.. Milwaukee is talking quietly. No managers know
Haha. Of course. The guy who eats donuts all day and but kisses management all day. Don't call him anchovy to his face because he cries to hr about name calling. Fat Rat
Amen to that Brother, but I've said it a hundred times and I'm going to say it a hundred more it's called Ignorance of the Mind and it's very hard to change that here the line haul drivers are waiting for a miracle to happen thinking that the company or Bradley Jacobs will give them that miracle but my friends I'll tell you that got another thing coming like a friend of mine said everyone wants to taste the honey but no one wants to put the hand in the Beehive to get the honey
XGH when are you guys going to sack up.
Thats right my friend and everything that the Union Buster says 99.9% it is all lies just so we would not vote or go union two things will definitely happen and this I promise you one the company will sell eventually 2 we all go Union and if you're protected by the laws of this country then there's very little that the company could do but sell but if you are a certified terminal Union represented you will always be protected by the IBT, the International Brotherhood Teamsters, and by the laws of this country, by the way so you know the company has been lying all along and will keep lying just not to see the union come in, but my friend but my friends I tell you the union will come in eventually because this company is not only corporate greed$$ there are also a discriminatioal company against their employees, and Management has a lot of favoritism only because of Retaliation! Against their union employee members. In Mia/NMF our XX TM N.W she got fired for all the discrimination and greediness against her employees she got what she deserved,also our X TM J.W he was also fired and was always in retaliation against the collective bargaining unit members in Mia he also got what he deserved all although we don't wish either one of them the worst and it's not personal, it was only business but I'm unfortunate it became personal to them. And they both got what they deserved just like everyone else that does good will get his deed and everyone that does evil will also get their fate. So I tell you my friends (don't do unto others what you would not have want done to you.
Peace out Mia Teamsters.
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