The National Legal and Policy Center (NLPC) has submitted a proposal urging shareholders of The Walt Disney Company (Disney) to vote for Item 7 on the 2024 Proxy Ballot, which calls for a report on compensation and health benefit disparities related to gender transitioning and de-transitioning. The NLPC argues that Disney's current policies may discriminate against employees suffering from gender dysphoria and those who regret transition-related medical procedures. The proposal highlights potential risks to the company, including reputational damage, operational and competitive risks, and legal challenges. Despite Disney's attempt to exclude the proposal from the annual meeting, the SEC has mandated its inclusion. The NLPC's proposal is a response to what it perceives as gaps in Disney...Show More

The National Legal and Policy Center (NLPC) has submitted a proposal urging shareholders of The Walt Disney Company (Disney) to vote for Item 7 on the 2024 Proxy Ballot, which calls for a report on compensation and health benefit disparities related to gender transitioning and de-transitioning. The NLPC argues that Disney's current policies may discriminate against employees suffering from gender dysphoria and those who regret transition-related medical procedures. The proposal highlights potential risks to the company, including reputational damage, operational and competitive risks, and legal challenges. Despite Disney's attempt to exclude the proposal from the annual meeting, the SEC has mandated its inclusion. The NLPC's proposal is a response to what it perceives as gaps in Disney's employee benefits and compensation policies, particularly concerning the treatment of gender dysphoria and the care for individuals who de-transition. The NLPC's memorandum cites various cases and studies to support its stance and references previous shareholder proposals at other companies addressing similar issues of discriminatory compensation practices. The NLPC also points out the divided public opinion on gender identity issues and the increasing litigiousness of individuals who regret their transition procedures. Disney's opposition to the proposal is characterized as dismissive and indifferent to the concerns raised. The NLPC calls on shareholders to support the proposal at the upcoming annual shareholder meeting on April 3, 2024.