AT&T to allow shareholder vote on diversity proposal

AT&T Inc. has reached a settlement with four New York City public pension funds, agreeing to permit a shareholder vote on a diversity disclosure proposal. The agreement concludes a legal challenge initiated by the funds to ensure transparency regarding the racial, ethnic, and gender composition of the company's 133,000-person workforce. New York City Comptroller Mark Levine confirmed the settlement on Wednesday, eight days after the funds sued to block the Dallas-based telecommunications giant from soliciting shareholder proxies that would have excluded the diversity proposal from its 2026 annual meeting. Historically, hundreds of companies in the United States seek permission from the Securities and Exchange Commission (SEC) to leave shareholder proposals off ballots, often receiving approval about half the time. The New York City Employees Retirement System, along with funds representing police, teachers, and other educational employees, argued that the company's prior opposition followed a November policy change by the SEC that allowed companies to claim a reasonable basis for excluding such proposals. > “Today’s settlement is a major win for investors amid ongoing attempts to undermine transparency and accountability,” Levine said in a statement. > “AT&T shareholders will now have the responsibility to vote on our proposal that requests disclosure of clear and detailed data to help investors better assess its efforts to advance equal opportunity.” The shift in corporate strategy regarding diversity, equity, and inclusion (DEI) comes as several major firms re-evaluate these programs following recent federal policy changes and executive orders aimed at curbing such efforts.