How I'd Vote at Coke

As can be seen from the list of stocks I own, I don’t have any direct investments in Coca Cola (KO). However, I do have indirect holdings through my pension at CalPERS and through several mutual funds and a strong longstanding concern about the safety of Bisphenol-A (BPA), a chemical used in the epoxy lining of Coca-Cola’s canned beverages.

Domini Social Investments, As You Sow, and Trillium Asset Management Corporation filed the first shareowner proposal focused solely on BPA at Coke, asking for a study updating investors on how the company is responding to the public policy challenges associated with BPA, including summarizing what the company is doing to maintain its position of leadership and public trust on this issue, the company’s role in adopting or encouraging development of alternatives to BPA.

Scientific studies indicate that BPA is an endocrine-disrupting chemical that mimics estrogen in the body. Numerous animal studies link BPA, even at very low doses, to changes in brain structure, immune system, and male and female reproductive systems changes. A recent study in the Journal of the American Medical Association links BPA exposures in humans to cardiovascular disease, diabetes, and liver enzyme abnormalities. Health Canada, a Canadian federal agency has warned that BPA can leach into beverages.

Manufacturers of baby and sports bottles have been eliminating BPA-containing plastics from their product lines. Eden Foods has been using BPA-free cans since 1999 and General Mills recently announced that the company will offer alternative can linings that do not use BPA for their organic canned tomatoes, so substitutes can be found.

There are additional shareowner proposals on the ballot seeking an advisory vote on executive pay, requiring an independent board chairman and performance-based equity awards. All should be supported. I’m delighted that CalPERS is voting in favor of all the resolutions and is also withholding votes from directors B. Diller and J. Wallenberg for serving on too many boards.

Need more voting advice on Coke? Check out ProxyDemocracy.org.

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