Top Financial Officers from Six Jurisdictions Raise Concerns Over Media Companies Retreat from Diversity Initiatives

Top Financial Officers from Six Jurisdictions Raise Concerns Over Media Companies Retreat from Diversity Initiatives

New York, NY - New York City Comptroller Mark Levine, New York State Comptroller Thomas P. DiNapoli, Connecticut Treasurer Erick Russell, Massachusetts State Treasurer Deborah B. Goldberg, California Controller Malia Cohen, and Maryland Comptroller Brooke Lierman today jointly sent letters to several major media companies raising concerns about recent decisions to rollback diversity initiatives and urging them to maintain commitments to building diverse and inclusive workplaces.

The letters to Verizon Communications Inc., Paramount Skydance Corporation, Nexstar Media Group, Inc., Charter Communications, Inc., and AT&T Inc. express concerns with each company's recent retrenchment:

• Each of these companies must still comply with federal anti-discrimination statutes, including Title VII of the Civil Rights Act. Additionally, state and municipal civil rights laws - many of which impose broader statutory compliance obligations than federal law - preserve private rights of action for individual employees independent of federal enforcement priorities.
• The pursuit of regulatory approvals does not diminish the Board's fiduciary obligations to oversee effective compliance systems, maintain rigorous internal controls over human capital management, and ensure the ongoing accuracy of public disclosures.
• Failure to maintain adequate compliance infrastructure and disclosure practices in these areas exposes these companies to significant litigation risk, material financial liability, and reputational harm.
• The elimination of diversity and inclusion programs also creates distinct business risk. Inclusive human capital management programs support and may directly bolster talent recruitment, employee retention, and overall operational performance.

"A diverse workforce is a competitive advantage, particularly at media companies who are not only in the business of people, but most successful when they can reach increasingly diverse audiences creatively and innovatively. These programs cannot become expendable in the face of noise and short-term regulatory pressures. Rolling them back does not make the underlying legal obligations disappear. Anti-discrimination laws remain on the books, and state and local civil rights protections remain enforceable, Investors want to know that when a company expresses a commitment to these programs it goes beyond rhetoric, even when pressure mounts." said New York City Comptroller Mark Levine.

"As a major long-term investor, the New York State Pension Fund expects boards to protect value, not abandon it under outside political pressure. Diversity programs directly strengthen recruitment, retention, and overall performance," said New York State Comptroller Thomas P. DiNapoli. "Stripping them away may expose these companies to lasting legal and reputational liabilities. We are asking these boards a simple question: did you actually weigh what you were giving up before you gave in?"

"Our fiduciary responsibility is to look at every potential risk and opportunity that can affect the long-term value of an investment and the returns Connecticut pensioners depend on. That includes how companies recruit and retain talent, manage their workforce, and respond to the diverse needs of the customers and markets they serve," said Connecticut Treasurer Erick Russell. "We recognize that companies are operating in a rapidly changing regulatory and political environment, but responding to short-term political pressure can create long-term risks for shareholders. When successful companies move away from management practices that have helped make them successful, it raises a red flag deserving of our scrutiny and a thorough explanation from each company's board and leadership."

"Diversity and inclusion are not expendable corporate initiatives. They are essential to sound governance and long-term financial performance. Companies that retreat from these commitments risk weakening their ability to attract talent, connect with the communities they serve, and protect shareholder value. Corporate boards have a responsibility to fully evaluate and disclose those risks, not simply yield to short-term political pressure," said California State Controller Malia M. Cohen.

"In Massachusetts, our pension fund invests billions of dollars in publicly traded companies, and we want to do all we can to protect the value of those investments," said Massachusetts State Treasurer Deborah B. Goldberg. "Recruiting and retaining a diverse workforce is not simply a social goal; it is a business imperative and essential to building innovative and resilient companies. Rolling back diversity initiatives is not an option; we must continue to invest in the people and practices that strengthen organizations and position them for long-term success."

The recent retrenchment by these companies is striking, but their peers, such as Netflix have assured investors by publicly reaffirming their commitments to these programs and Verizon, Paramount, Nexstar, Charter and AT&T have an opportunity to do the same.

To better understand the potential implications of these companies' workplace diversity rollbacks, the signatories are requesting information on whether a formal risk assessment of these changes has been issued by the companies' management to their boards, and if the boards have explicitly determined that sufficient compliance, monitoring, and disclosure mechanisms would remain in place following these changes.

The letter to each company is available at the links below.

Verizon Communications: https://comptroller.nyc.gov/reports/joint-letter-to-verizon-communications-re-dei-rollbacks/
Paramount Skydance Corporation: https://comptroller.nyc.gov/reports/joint-letter-to-paramount-skydance-corporation-re-dei-rollbacks/
Nextstar Media Group: https://comptroller.nyc.gov/reports/joint-letter-to-nexstar-media-group-re-dei-rollbacks/
Charter: https://comptroller.nyc.gov/reports/joint-letter-to-charter-communications-re-dei-rollbacks/
AT&T: https://comptroller.nyc.gov/reports/joint-letter-to-att-re-dei-rollbacks/

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