{"id":4064,"date":"2020-05-13T00:54:35","date_gmt":"2020-05-13T00:54:35","guid":{"rendered":"https:\/\/share.ca\/proxy-alert-2020-bam\/"},"modified":"2022-02-18T23:41:10","modified_gmt":"2022-02-18T23:41:10","slug":"proxy-alert-2020-bam","status":"publish","type":"post","link":"https:\/\/share.ca\/blog\/proxy-alert-2020-bam\/","title":{"rendered":"Proxy Alert: Shareholder proposal on human capital management oversight at Brookfield Asset Management"},"content":{"rendered":"

Brookfield Asset Management <\/strong>
\nSymbol:<\/strong> BAM (TSX\/NYSE)
\nAnnual Meeting Date: <\/strong>June 12, 2020
\nFiler: BC Teachers\u2019 Federation<\/strong>, supported by SHARE<\/p>\n

Recommendation:
\nVote <\/strong>FOR<\/u><\/strong> shareholder proposal on human capital management oversight at the board level <\/strong><\/p>\n

SHARE\u2019s Recommendation and rationale<\/h2>\n

SHARE\u2019s 2020 engagement agenda places decent work at the centre. Among our specific objectives for the year is to encourage leading Canadian and international firms to adopt Board-level oversight and accountability for human capital management.<\/p>\n

Clarifying the responsibilities of specific board committees improves the ability of shareholders to hold board members accountable on human capital management.<\/p>\n

The resolution at Brookfield Asset Management is filed on behalf of BC Teachers\u2019 Federation for the June 12, 2020 annual general meeting. The resolution recommends the company assign accountability to a board committee and amend the committee\u2019s charter to monitor human capital management policies and disclosure and evaluate the disclosure of workforce metrics to shareholders. The full text of the resolution is available below<\/a>.<\/p>\n

If adopted, Brookfield would join McDonalds, Dollarama, and Thompson Reuters among companies that have adopted board level oversight for decent work in recent months.<\/p>\n

This winter, SHARE had positive discussions with McDonalds. The company agreed to amend the charter of its board public policy and strategy committee to assign responsibility for oversight of workplace health and safety, respectful workplace environments, and diversity and inclusion. After meeting with SHARE, Dollarama agreed to similar language in its own board charter. Thomson Reuters, where we held similar discussions last year, recently published its own revised board committee charter adopting many of SHARE\u2019s proposed changes.<\/p>\n

Brookfield employs more than 150,000 people in over 30 countries. Many of these employees are front line workers who operate ports, roads and utilities or clean malls. Hence, their occupations fall under the  definition of essential services in countries like Canada<\/a> and the USA<\/a> which make up 31% of the company\u2019s infrastructure portfolio – the largest geographical segment.<\/a> As the global pandemic unfolds, companies like Brookfield need to balance out health and safety risks to their workforce and the ongoing provision of essential services. This calls for a board structure that has the capacity to oversee workforce issues promptly and decisively. SHARE believes that assigning the oversight of human capital management to one board committee \u2013 instead of the current approach which is described below \u2013 would enhance the board\u2019s capacity to respond effectively. It would also provide shareholders with an improved accountability channel at a time when human capital management issues are gaining importance in the investment community. The company has not codified human capital management or workforce oversight in any committee board mandates.<\/p>\n

Furthermore, shareholders continue to be critical of the company\u2019s refusal to provide meaningful KPIs and trends on some of its stated workforce-related targets. For instance, Brookfield has a commitment to \u201czero serious safety incidents\u201d but does not provide any narrative or KPI reporting on how close it is to reaching the goal, how performance varies from year to year, or what steps will be taken to improve performance. On the other hand, Vinci Group, whose infrastructure portfolios includes transport, utilities and data transmission assets and shares similarities with Brookfield\u2019s, discloses data on the frequency and severity of workplace incidents over time.<\/p>\n

SHARE therefore recommends a vote FOR the resolution.<\/p>\n

Resolution<\/h2>\n

Resolved<\/strong>: That the company assign oversight responsibility for human capital management to a board committee and that the committee\u2019s charter be modified to include the following:<\/p>\n