Disney Faces Shareholder Pushback Amid DEI Controversy

Disney shareholders have rejected a proposal to withdraw from the Human Rights Campaign's corporate equity index. The proposal argued that Disney's DEI involvement alienates audiences and affects stock prices. Only 1% of shareholders supported the measure, despite similar moves by other major companies.

In a significant development, Disney shareholders have overwhelmingly rejected a proposal to exit the Human Rights Campaign's corporate equity index. The index evaluates companies on LGBTQ equality. This decision reflects ongoing tensions as companies navigate the political landscape regarding diversity, equity, and inclusion (DEI) policies.

The proposal, put forth by some investors, argued that Disney's involvement in divisive political issues has not only alienated parts of its audience but also negatively impacted its stock performance. Despite these concerns, Disney's governance urged investors to oppose the measure, emphasizing that their board already oversees workforce equity issues.

Only a meager 1% of shareholders voted in favor of the proposal, contrasting with actions by other companies like Ford and Lowe's, which have ended participation in the LGBTQ-friendly work environment rankings. Meanwhile, Disney made adjustments to its executive compensation criteria, indicating a subtle shift away from traditional DEI objectives to a broader 'talent strategy.'

(With inputs from agencies.)