Shareholders Challenge Mastercard’s Risky DEI Goals

Washington, D.C. — At today’s annual meeting of Mastercard shareholders, a representative of the National Center for Public Policy Research’s Free Enterprise Project (FEP) presented a proposal opposing Mastercard’s Diversity, Equity & Inclusion (DEI) agenda. “Mastercard apparently continues to have a number of expressly racially discriminatory affirmative action initiatives on its books,” FEP Executive Director Stefan Padfield told shareholders at today’s meeting. “In fact, nowhere in its opposition statement does Mastercard even attempt to disavow the examples of express racial discrimination we cite. Instead, shareholders are given platitudes about ‘inclusion’ and assurances that Mastercard can’t be engaging in illegal discrimination because it has policies against such things.”  FEP’s proposal, Proposal 8, requests that Mastercard conduct a review of how its affirmative action initiatives impact its ongoing litigation risks based on actual and perceived discrimination under relevant civil rights laws. In its written supporting statement, FEP notes that Mastercard apparently continues to implement DEI policies despite an increasingly risky atmosphere surrounding such policies. It notes:Mastercard plans to “grow U.S. Black leadership at the vice president level and above at Mastercard by 50% by 2025, from 2020”;Mastercard plans to “invest $500 million in Black communities”;Mastercard has “committed to increase our procurement with Black-owned businesses to $100 million annually by 2025.””Dividing employees and other stakeholders on the basis of race and then allocating benefits on that basis may be deemed immoral, illegal, and a breach of duty,” FEP notes in the statement.  In addition to asking shareholders to support Proposal 8, FEP has published an entire voting scorecard for Mastercard shareholders as part of its Proxy Navigator voting guide, including these recommendations: ITEM 1: Board of Directors Nominations – ABSTAIN ITEM 2: Executive Compensation – ABSTAIN ITEM 3: Ratification of Auditors – ABSTAIN ITEM 4: Approval of an Amendment to Mastercard’s Amended and Restated Certificate of Incorporation to Limit Liability of Officers as Permitted by Delaware Law – ABSTAIN ITEM 5: Approval of an Amendment to Mastercard’s Amended and Restated Certificate of Incorporation to remove the Industry Director Concept – ABSTAIN ITEM 6: Approval of an Amendment to Mastercard’s Amended and Restated Certificate of Incorporation to Implement Other Miscellaneous Changes – ABSTAIN ITEM 7: Consideration of a Stockholder Proposal Requesting a Racial Equity Audit Report – AGAINST. ITEM 8: Consideration of a Stockholder Proposal Requesting a Report on Affirmative Action Risks – FOR