The newly released annual “2022 CPA-Zicklin Index of Corporate Political Disclosure and Accountability” benchmarks corporate political spending practices and disclosure among nearly all of the S&P 500 (as of April 15, 2022) and, for the first time, the 511 companies in the Russell 1000 index that are not constituents of the S&P 500 (as of July 14, 2022).* Not surprisingly, the report reveals significant differences in practices and disclosure between the two company groups.
Among the key findings are these concerning board oversight:
- Just under 11% of Russell 1000 companies require some level of board political spending oversight, compared to 62% of S&P 500 companies.
- Less than 9% of Russell 1000 companies have a board committee that reviews direct contributions/expenditures, compared to 56% of S&P 500 companies.
- Approximately 5% of Russell 1000 companies have a board committee that reviews payments to tax-exempt groups, compared to 52% of S&P 500 companies.
- Less than 2% of Russell 1000 companies charge a board committee with approval of their political expenditures, compared to about 8% of S&P 500 companies.
- Less than 3% of Russell 1000 companies specify board committee oversight of political spending policies and direct spending and indirect spending, compared to 42% of S&P 500 companies.
*See footnote 19 of the report for an explanation of the Russell 1000 companies.
See the CPA’s release; the current CPA-Wharton Zicklin Model Code of Conduct in Appendix I of the report and here; and additional resources on our Political Contributions & Disclosure topical page.
This post first appeared in the weekly Society Alert!