Costco shareholders reject anti-DEI proposal

• Costco shareholders have rejected a proposal to account for risks related to the company’s DEI efforts.
• While several companies have backed away from their diversity programs, Costco’s board of directors unanimously supported theirs.
• The outcome comes just days after President Trump issued sweeping rules to end DEI initiatives at federal agencies.

Costco shareholders on Thursday roundly rejected a proposal from a conservative think tank to report on the potential risks of the company’s DEI efforts.

An “overwhelming margin” of 98% of stocks voted against the measure in preliminary results, Costco said.

While several companies, including retailers like Walmart and Tractor Supply Co., backed away from their diversity programs, Costco’s board unanimously supported theirs and called for it to be rejected.

In pre-recorded messages during the meeting, a representative from the National Center for Public Policy Research called DEI programs “illegal, immoral and detrimental to shareholder value,” saying the term “conceals a radical Marxist agenda.” .

In response, Costco Chairman Tony James said its programs were “consistent with the company’s values ​​and code of ethics.”

“We have always been deliberately apolitical and a welcoming workforce has been an integral part of the company’s culture and values ​​since its inception,” he added.

The outcome comes just days after President Donald Trump issued draconian rules to end DEI initiatives for federal agencies, which could lead to new challenges for private sector vendors and contractors doing business with the government.

A Conference Board study last year found that less than 1% of public companies have seen shareholder proposals on DEI issues, with anti-DEI proposals receiving less than 2% support.

Costco has made clear its support for its DEI initiatives.

In its proxy statement last month, Costco criticized NCPPR as concerned not with real financial or legal risks to shareholder value, but rather with a deceptive and partisan agenda.

“We believe that the sponsor’s request for a study reflects a political bias with which we do not agree and that a more in-depth study and report would not be an effective use of company resources.” declared the famous thrifty company.