The National Legal and Policy Center (NLPC) has submitted a shareholder proposal, known as Proposal 4, urging Johnson & Johnson shareholders to vote in favor of a report on gender-based compensation gaps and associated risks. This proposal, to be considered at the company's annual shareholder meeting on April 25, 2024, addresses the treatment of gender dysphoria and de-transitioning care within the company's compensation policies. The NLPC highlights the lack of equitable treatment for employees across all gender classifications, particularly for those who de-transition, and the potential reputational, competitive, operational, and litigative risks associated with current compensation disparities. Johnson & Johnson previously attempted to exclude Proposal 4 from the meeting but was overruled by the SEC. The NLPC argues that the company...Show More

The National Legal and Policy Center (NLPC) has submitted a shareholder proposal, known as Proposal 4, urging Johnson & Johnson shareholders to vote in favor of a report on gender-based compensation gaps and associated risks. This proposal, to be considered at the company's annual shareholder meeting on April 25, 2024, addresses the treatment of gender dysphoria and de-transitioning care within the company's compensation policies. The NLPC highlights the lack of equitable treatment for employees across all gender classifications, particularly for those who de-transition, and the potential reputational, competitive, operational, and litigative risks associated with current compensation disparities. Johnson & Johnson previously attempted to exclude Proposal 4 from the meeting but was overruled by the SEC. The NLPC argues that the company's current policies may lead to a surge in litigation similar to the costly talcum powder lawsuits Johnson & Johnson has faced in recent years. The NLPC's submission includes a request for the board of directors to issue a report by March 31, 2025, detailing how the company addresses these issues and the risks involved.