Arjuna Capital, on behalf of Applied Materials shareholders, has submitted a proxy proposal for the company's 2024 Annual Meeting, urging shareholders to vote 'FOR' Proposal 5. This proposal requests Applied Materials to report on unadjusted and statistically adjusted pay gaps across race and gender, including associated risks and the impact on diversity recruitment and retention. The report should exclude proprietary information and legal details. Arjuna Capital argues that median pay gap disclosures are a valid measure of pay equity, as recognized by various authoritative bodies, and that Applied Materials has not committed to disclosing these figures despite their importance. They highlight that other companies have begun disclosing median pay gaps and that Applied Materials is lagging behind in this area. The...Show More

Arjuna Capital, on behalf of Applied Materials shareholders, has submitted a proxy proposal for the company's 2024 Annual Meeting, urging shareholders to vote 'FOR' Proposal 5. This proposal requests Applied Materials to report on unadjusted and statistically adjusted pay gaps across race and gender, including associated risks and the impact on diversity recruitment and retention. The report should exclude proprietary information and legal details. Arjuna Capital argues that median pay gap disclosures are a valid measure of pay equity, as recognized by various authoritative bodies, and that Applied Materials has not committed to disclosing these figures despite their importance. They highlight that other companies have begun disclosing median pay gaps and that Applied Materials is lagging behind in this area. The Board of Applied Materials opposes the proposal, stating that median pay gap reporting is not a meaningful metric and that it does not accurately reflect whether equitable pay is provided for similar roles. Arjuna Capital counters that median pay gap data is essential for a comprehensive understanding of the company's Diversity, Equity, and Inclusion (DEI) performance and that it is a critical complement to DEI programs. They conclude by stating that pay transparency leads to narrower pay gaps and improved diversity, which is in the long-term financial interest of shareholders.