Eli Lilly and Co. (LLY) is facing a shareholder proposal from As You Sow, requesting the company to provide an annual report on the effectiveness of its diversity, equity, and inclusion (DEI) efforts. The proposal, set for a vote at the annual meeting on May 6th, 2024, calls for Eli Lilly to disclose quantitative metrics on hiring, retention, and promotion by gender, race, and ethnicity. As You Sow argues that current disclosures by Eli Lilly are insufficient, providing only a snapshot of workforce diversity at a single point in time, which does not adequately assess the effectiveness of the company's DEI policies. Comparative studies cited in the proposal demonstrate a link between management diversity and corporate financial performance, particularly in the...Show More

Eli Lilly and Co. (LLY) is facing a shareholder proposal from As You Sow, requesting the company to provide an annual report on the effectiveness of its diversity, equity, and inclusion (DEI) efforts. The proposal, set for a vote at the annual meeting on May 6th, 2024, calls for Eli Lilly to disclose quantitative metrics on hiring, retention, and promotion by gender, race, and ethnicity. As You Sow argues that current disclosures by Eli Lilly are insufficient, providing only a snapshot of workforce diversity at a single point in time, which does not adequately assess the effectiveness of the company's DEI policies. Comparative studies cited in the proposal demonstrate a link between management diversity and corporate financial performance, particularly in the healthcare sector. Eli Lilly is reported to lag behind its peers in DEI disclosures, which could have implications for investor decision-making and the company's competitive and legal risks. The proposal emphasizes the need for more nuanced data to understand the company's human capital management and its impact on corporate value and risk.