September/November 2006

Shareholder Resolutions Meet with Success


In collaboration with other mission-based investors, Catholic Health Initiatives filed eight shareholder resolutions during the past year to seek corporate governance reforms, limits on price increases for prescription drugs, the prohibition of smoking in public workplaces and more. The following resolutions had successful outcomes, meaning they received enough shareholder votes to be re-filed next year. In collaboration with other mission-based investors, Catholic Health Initiatives filed eight shareholder resolutions during the past year to seek corporate governance reforms, limits on price increases for prescription drugs, the prohibition of smoking in public workplaces and more. The following resolutions had successful outcomes, meaning they received enough shareholder votes to be re-filed next year.
Company* Resolution


Abbott Laboratories
Lilly (Eli) and Company Wyeth
Implement a basic corporate governance principle: the separation of the roles of board chair and chief executive officer.
Pfizer, Inc.

Assume responsibility for limiting price increases on the most-prescribed drugs and report means to accomplish this to shareholders.
Altria Group, Inc.


Support laws against smoking in public places as well as tax increases to demonstrably reduce smoking, especially among young people; support all efforts to repeal existing pre-emption laws limiting local smoke-free air ordinances.

* Note: Catholic Health Initiatives owns small amounts of stock in companies, such as tobacco companies, that are restricted under the organization’s social screens so it has the ability to participate in shareholder activism.

Resolutions filed with Loews Corporation seeking support for the prohibition of smoking in public workplaces; with Reynolds American to establish cigarette fire safety regulatory criteria; and with UST to establish independent review of the company’s Internet advertising were not successful, meaning they cannot be re-filed next year. However, shareholders can file new resolutions with these companies to address important health and social issues.

For more information on Catholic Health Initiatives’ advocacy activities and priorities, visit the Advocacy page on this site.