Viewpoint Diversity Score
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ADF to SEC: Don't let Wells Fargo, Charles Schwab dodge shareholders
WASHINGTON – Alliance Defending Freedom attorneys sent two letters Friday to the U.S. Securities and Exchange Commission, calling on the agency to deny attempts from Wells Fargo and Charles Schwab to sidestep calls for transparency from their shareholders.
Rather than allowing shareholder resolutions to reach the respective proxy ballots for their upcoming annual meetings, both companies have asked the SEC for permission to exclude them. Wells Fargo is asking to exclude a proposal that calls for transparency into the risks of politicized de-banking, which was submitted by the American Conservative Values ETF. Meanwhile, Charles Schwab is seeking to withhold from the ballot a proposal from Inspire Global Hope ETF asking the corporation to issue a report evaluating its Diversity, Equity, and Inclusion policies and other policies that could contribute to workforce discrimination.
“Major corporations need to quit using the SEC to hide from their shareholders,” said ADF Senior Counsel and Senior Vice President for Corporate Engagement Jeremy Tedesco. “Wells Fargo and Charles Schwab are both trying to avoid addressing legitimate concerns shared by millions of Americans and many of their own shareholders. That’s not going to work anymore.”
Policies and practices at Wells Fargo and Charles Schwab were both evaluated as part of ADF’s 2023 Viewpoint Diversity Score Business Index—the premiere benchmark measuring corporate respect for free speech and religious freedom. The third-largest commercial bank in the nation, Wells Fargo scored an exceedingly low 10% of 100% possible, while Charles Schwab scored an incrementally higher 13%.
As ADF attorneys explain, Wells Fargo incredulously argued that “one year” means 366 days to try to convince the SEC that American Conservative Values ETF failed to meet the “one year” stock ownership requirement. In its attempted dodge of shareholders, Charles Schwab argued that Inspire Global Hope ETF’s proposal for a report on DE&I was a resubmission of a 2023 submission focused on politicized de-banking—an argument that ADF attorneys urged the SEC to reject.
“Publicly traded corporations belong to the shareholders, not the executives they hire to run the company,” said ADF Legal Counsel Michael Ross. “We fully expect the SEC to do what’s right and allow needed sunlight into the high-level decision-making that impacts the lives not only of shareholders, customers, and employees but also countless everyday Americans who depend on these financial institutions.”
Find out more about Viewpoint Diversity Score and the Business Index at www.ViewpointDiversityScore.org.
Alliance Defending Freedom is an alliance-building, non-profit legal organization committed to protecting religious freedom, free speech, parental rights, and the sanctity of life.
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Jeremy Tedesco serves as senior counsel and senior vice president of corporate engagement for Alliance Defending Freedom. In this role, Tedesco leads ADF’s efforts to combat corporate cancel culture and build a business ethic that respects free speech, religious freedom, and human dignity. Immediately preceding his current role, Tedesco served as senior vice president for communications, during which time he was a lead convener of the Philadelphia Statement, a movement dedicated to restoring free speech and civil discourse. Previously, Tedesco litigated First Amendment cases at the highest levels. He was part of the legal team that represented cake artist Jack Phillips in Masterpiece Cakeshop v. Colorado Civil Rights Commission before the U.S. Supreme Court and argued Phillips’ case at the Colorado Court of Appeals. He was also the lead brief writer in two other U.S. Supreme Court wins, Reed v. Town of Gilbert and Arizona Christian School Tuition Organization v. Winn. Tedesco has also argued six times before five different federal appellate courts and founded and directed the ADF Center for Conscience Initiatives, where he led efforts to protect individuals from government-coerced speech. Tedesco earned his Juris Doctor in 2004 from the Regent University School of Law.
Michael Ross serves as legal counsel for the Corporate Engagement Team with Alliance Defending Freedom, where he assists in developing and implementing successful legal solutions and corporate engagement strategies to neutralize mounting corporate hostility to people of faith and to encourage corporations to respect free speech, religious freedom, and life. Ross previously served on the Center for Academic Freedom Team, defending the First Amendment freedoms of college students and student organizations on university campuses. Ross earned his Juris Doctor in 2016 from Vanderbilt Law School, where he served as president of the Christian Legal Society and executive authorities editor for the Vanderbilt Transnational Law Journal. He obtained B.A. degrees in mathematics and religious studies from Vanderbilt University in 2010. Ross is a member of the bar in Tennessee.