June 10 (Reuters) - A shareholder resolution calling on
content and technology company Thomson Reuters ( TMSOF ) to review the
human rights implications of its work with U.S. immigration
authorities won only about 3% support at the firm's annual
meeting on Wednesday.
The vote on the resolution, proposed by a British Columbia
government workers union, centered on products and services sold
to law enforcement by the Toronto-based company that some
investors and employees say may help power the Trump
administration's crackdown on undocumented immigrants.
Thomson Reuters ( TMSOF ) had opposed the proposal, and at the meeting
its chairman, David Thomson, said "over 95%" had voted against
the shareholder measure, while "over 3%" supported it.
"We welcome the outcome of today's vote, which reflects
shareholders' confidence in the board's recommendation to vote
against the proposal," a Thomson Reuters ( TMSOF ) spokesperson said.
An example of government work cited by supporters of the
failed resolution was a $22.8 million contract set to have ended
in May with the Department of Homeland Security that in part
provided the Immigration and Customs Enforcement (ICE) agency
with license plate reader data.
According to federal spending records, that and other
contracts were awarded to Thomson Reuters Special Services
(TRSS), a unit of Thomson Reuters ( TMSOF ) based in McLean, Virginia. The
unit says its products help prevent financial crimes, identify
foreign influence and help law enforcement and national security
officials analyze data.
The company's Reuters news organization is independent,
operating separately from the other parts of Thomson Reuters' ( TMSOF )
business.
One corporate governance expert said the vote showed that
Thomson Reuters' ( TMSOF ) biggest investors either felt the measure was
unnecessary, or had no appetite for confrontation with the Trump
administration over its immigration policies.
"With this vote you have investors not interested in
signaling anything" about the company's work with immigration
authorities, said Douglas Chia, president of independent
corporate governance firm Soundboard Governance.
One major investor, Norway's sovereign wealth fund, said it
voted against the measure because it could not support a
proposal "where the company does not appear to have significant
gaps in their management or reporting of the relevant
sustainability risk."