A union-backed investment group is applying pressure Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) And Walmart Inc. (NASDAQ:WMT) to reveal how the new immigration policy under President Donald Trump could disrupt their operations and their long-term value.
Trump’s H1B reimbursement raises concerns
Proxy advisor SOC Investment Groupwhich works primarily with pension funds affiliated with the Strategic Organizing Center union, has asked the three companies to explain how they will address workforce disruptions related to Trump’s proposed $100,000 fee for new H-1B visa approvals, according to a Reuters report.
These companies were singled out for their excessive exposure to immigration disruptions, as they are the largest employers of H1B workers in the US
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The Executive Director of the SOC, That Patelnoted that the availability of skilled labor is a critical issue that affects the “long-term performance of a company,” while adding that an inability to hire the right people could erode value.
The group owns less than 1% of each company, but together with allied funds collectively own tens of millions of shares of the three tech and retail giants.
In letters to the companies, SOC also urged Amazon and Walmart to disclose how other immigration enforcement actions, such as farm raids, affect their logistics and supply chain operations.
The SOC has urged the companies to print its resolutions in their upcoming proxy statements, with Patel adding that “disputes” are on the table in case they refuse.
Crackdown on proxy advisors
This comes days after Trump signed an executive order demanding better regulations to curb the powers of proxy advisors such as Institutional Shareholder Services (ISS) and Glass Lewis.
Billionaire entrepreneur and Tesla Inc. (NASDAQ: TSLA) CEO, Elon Muskhad similarly criticized proxy advisors, calling them “corporate terrorists” who vote on “arbitrary political lines” for recommending shareholders vote against his trillion-dollar compensation package.
Price promotion: Alphabet shares fell 3.14% to $298.06, Amazon.com shares fell 0.58% to $221.27 and Walmart shares rose 0.21% to $115.66 while the market was closed Wednesday, according to data from Benzinga Pro.
Amazon shares score high on Growth and Quality Benzinga’s Edge Stock Rankingswith a favorable price development in the long term. Click here to see how it compares to competitors like Google parent Alphabet and retail giant Walmart, along with other key insights.
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