New York State Comptroller Thomas P. DiNapoli, trustee of the New York State Common Retirement Fund (Fund), is asking fellow investors in Wynn Resorts to vote their shares for the Fund's request that the company disclose its direct and indirect political spending. DiNapoli's shareholder request (Proposal 4 on the company's proxy statement) will be voted on at Wynn's annual meeting tomorrow.
"Corporate spending on political causes is inherently risky, and the stakes are raised when it's done behind closed doors," DiNapoli said. "Shareholders have the right to know if their investment dollars are being spent on political agendas that are not in the company's best interest."
Currently, Wynn Resorts does not independently disclose political contributions. According to publicly available data, Wynn Resorts has spent millions of dollars in corporate funds on political activities since the 2010 election cycle. Without disclosure of political spending, Wynn Resorts shareholders are unable to examine whether such spending is aligned with the Company's business and cannot assess its exposure to the risks attendant to corporate political spending.
In addition to seeking support for the Fund's proposal, DiNapoli asked shareholders to join the Fund in withholding votes from all board directors up for re-election.
Separately, DiNapoli and the Fund have been named co-lead plaintiffs, with the New York City Retirement Systems and Pension Funds, in a derivative lawsuit against certain board members and senior executives for failing their fiduciary duty to the company. The suit alleges that because Mr. Wynn's behavior was allowed to go unchecked, employees suffered, shareholders lost value, the company's reputation was irreparably harmed, and it now faces lawsuits, possible loss of gaming licenses and other potential regulatory sanctions. The lawsuit seeks reform of the company's governance.
The New York State Common Retirement Fund held 176,500 shares of Wynn Resorts valued at approximately $32.8 million as of April 30, 2018.
DiNapoli's letter to fellow Wynn Resorts' shareholders can be read here: http://osc.state.ny.us/sites/default/files/other/documents/pdf/2019-04/wynn-resorts-shareholders-letter.pdf
DiNapoli's shareholder proposal can be read here: http://osc.state.ny.us/sites/default/files/other/documents/pdf/2019-04/wynn-resorts-shareholder-proposal.pdf
DiNapoli has made public reporting of corporate political spending a priority since the U.S. Supreme Court's Citizens United ruling in 2010. The Fund asks companies for comprehensive and public reports that list their corporate spending on candidates, political parties, ballot measures, any direct or indirect state and federal lobbying, payments to any trade associations used for political purposes, and payments made to any organization that writes and endorses model legislation. DiNapoli and the Fund have persuaded 37 companies to voluntarily disclose political spending.
About the New York State Common Retirement Fund
The New York State Common Retirement Fund is the third largest public pension fund in the United States, with an estimated $209.1 billion in assets under management as of Dec. 31, 2017. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. The Fund has a diversified portfolio of public and private equities, fixed income, real estate and alternative instruments.