A month ago I went to the General Dynamics annual shareholder meeting outside of Washington, D.C. You may remember I was going to introduce a resolution calling for investigation of corporate human rights practices with an eye to developing a human rights policy. The resolution got 17 percent of the votes cast.
This is important. By Securities and Exchange rules, shareholders cannot tell management what to do unless they take over the board. So resolutions can only make recommendations to the board. But because management controls so many proxies, the SEC says if a resolution gets 3 percent of the vote, it can be reintroduced the next year. The shareholder proponents did well at General Dynamics.
Tomorrow I am driving to the Caterpillar meeting in Little Rock, Ark. Little Rock? you ask. Perhaps you thought their HQ was Peoria, Ill. Well, yes, it is. Apparently the company is running away from the small band of activists. We criticize Caterpillar's sale of weaponized D9 bulldozers through the Pentagon to the Israeli Defense Force.