As Stockholder Meetings Approach, Trillium Asset Management Solicits Shareholder Support for "No Political Spending" Proposals at Bank of America, 3M

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May 04, 2012, 12:24 ET

BOSTON, May 4, 2012 /PRNewswire/-- As the annual shareholder meetings of 3M and Bank of America approach, on May 8 and 9, respectively, Trillium Asset Management, LLC ("Trillium"), an investment firm specializing in sustainable and responsible investing, has posted open letters to fellow shareholders of the two companies on the Securities and Exchange Commission's site. The letters urge a "yes" vote for proposals that call on the companies to adopt a policy prohibiting the use of corporate funds for any political election or campaign.

The proposals call for such a policy to include any contribution, made directly or indirectly, that is intended to influence the outcome of an election or referendum. The inclusion of indirect expenditures responds to the increasing use of trade associations or independent committees (incorporated as 527s or 501c-4s) as third party vehicles to hide the identity of contributors. The U.S. Supreme Court's landmark Citizens United decision in 2010 opened the door for those vehicles to receive unlimited contributions from donors, unleashing a tidal wave of new money into the 2010 and 2012 election cycles.

Alluding to Bank of America's recent financial, legal and brand challenges, the letter to its shareholders states, "Bank of America needs to focus itself 100% on restoring the integrity of its products and its service to customers and clients; only from achieving that commitment will its reputation, brand and market leadership be restored. Being perceived as a corporation that depends upon political goodwill for its survival only compounds the enormity of the Bank's current challenges."

"Implementing our proposal would send a bold message to customers, regulators, shareholders, employees and other stakeholders that Bank of America understands the tasks ahead and has set its priorities properly," said Shelley Alpern, Vice President at Trillium Asset Management.

Separately, an online petition in support of the resolution generated by SumOfUs.org has gathered 75,000 shareholders as of this date, 32% of whom identified themselves as Bank of America customers.

The investment firm is asking 3M to implement this policy subsequent to conversations concerning the company's contributions to the controversial independent committee MN Forward in 2010. Target Corporation's donations to the same group had sparked a nationwide backlash due to the group's support of a gubernatorial candidate known for his hostility to LGBT (lesbian, gay, bisexual, transgender) civil rights. 3M and Target were two of several companies supportive of MN Forward that Trillium engaged; unique among them, 3M expressed no regret for its contribution, disclosing that it had made a second large donation after Target's had become a nationwide controversy.

The resolutions focus on contributions from general treasury funds. They do not address corporate political action committees (which are funded by employees) or lobbying expenditures.

The Trillium letter to Bank of America shareholders can be viewed here: http://1.usa.gov/JVI7fw.

The Trillium letter to 3M can be viewed here: http://1.usa.gov/IDavQX.

Trillium Asset Management, LLC is the oldest independent investment advisor devoted exclusively to sustainable and responsible investing. With over $1 billion in assets under management, Trillium has been managing equity and fixed income investments for high net worth individuals, foundations, endowments, religious institutions, and other nonprofits, since 1982. A leader in shareholder advocacy and public policy work, Trillium's goal is to deliver both impact and performance to its investors.

The views expressed are those of the authors and Trillium Asset Management, LLC as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be a forecast of future events or a guarantee of future results. These views may not be relied upon as investment advice. The information provided in this material should not be considered a recommendation to buy or sell any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the authors on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is for informational purposes and should not be construed as a research report.