Disney investors reject a proposal to withdraw from HRC's diversity index

By Dawn Chmielewski

(Reuters) - Disney shareholders rejected an investor proposal to withdraw participation in the Human Rights Campaign's corporate equity index, which rates workplaces on lesbian, gay, bisexual, transgender and queer equality.

Disney is among the highest-profile employers to revise some of its diversity and inclusion practices as the Trump administration cracks down on diversity, equity and inclusion, or DEI, practices across the federal government and in the private sector.

Walt Disney was among 765 companies to receive a perfect score in its 2025 ranking, acknowledging its efforts to protect against workplace discrimination, to provide inclusive benefits and to offer training to achieve an inclusive culture.

The shareholder proposal argues that Disney's involvement in such divisive political issues has alienated segments of the audience, and damaged the company's stock price. It urges investors to support the proposal, which it says provides an opportunity for Disney "to move back to neutral."

Disney urged investors to reject the proposal, saying its board already provides oversight of workforce equity matters.

Only 1% of shareholders voted to support this measure, according to the preliminary tally announced Thursday.

Other companies, including automaker Ford Motor, motorcycle manufacturer Harley-Davidson and home improvement retailer Lowe's, have ended their participation in the annual ranking of companies with LGBTQ-friendly work environments.

A number of U.S. companies have retreated from DEI in recent months, as the Trump administration stepped up threats to companies and institutions that engage in those efforts.

Even Disney changed its executive compensation criteria, replacing the objective of increasing diversity and inclusion with a factor called "talent strategy," which evaluates how well leaders advance the company's overall values.

In other matters, Disney's investors returned all 10 members to its board of directors and retained PricewaterhouseCoopers as the company's independent public accountant. Investors voted for a non-binding resolution, supporting executive compensation.

Shareholders rejected a proposal to publish a report, disclosing how its retirement plan investments protect the plan's beneficiaries from investments in high-carbon companies.

Investors voted against a proposal that called on Disney to issue a report, evaluating how it evaluates the risks related to discriminating against ad buyers or sellers based on their political or religious views.

Disney's investors also rejected a proposal that called on the company to adopt politically neutral ad policies. The proposal took issue with the company's participation in the now-defunct Global Alliance for Responsible Media, which was formed to protect brands from harmful content. Elon Musk's social media platform X later sued the nonprofit, which alleged companies had conspired to organize a massive boycott.

(Reporting by Dawn Chmielewski in Los Angeles; Editing by Nick Zieminski)