The recently released annual “2024 CPA-Zicklin Index of Corporate Political Disclosure and Accountability” benchmarks corporate political spending practices and disclosure among nearly all of the S&P 500 (495 companies as of April 15, 2024) and the 494 companies in the Russell 1000 index that are not constituents of the S&P 500 (as of June 30, 2024).* Results are focused on the former group of companies, with the report revealing little change from last year’s report among the balance of the Russell 1000. Not surprisingly, the report reveals significant differences in practices and disclosure between the two company groups.
Among the key S&P 500 findings are these concerning board political spending oversight:
- Just over 64% of companies require general board oversight.
- Nearly 57% of companies have a board committee that reviews direct contributions/expenditures.
- More than half of companies have a board committee that reviews payments to tax-exempt groups.
- Nearly 13% of companies charge a board committee with approval of their political expenditures.
A sample disclosure report and model policy disclosures are accessible here.
*See footnote 8 of the report for an explanation of the Russell 1000 companies.