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Record Vote on Diversity Shareholder Proposal at Silicon Valley Company, Palo Alto Networks

December 20, 2017 // Boston, MA – Trillium Asset Management is pleased to announce that its gender and racial diversity shareholder proposal filed at network and enterprise security company, Palo Alto Networks (NYSE: PANW), received a 50.9% majority vote at the company annual meeting on December 8th. The shareholder proposal asked Palo Alto Networks to disclose EEO-1 data and policies/programs focused on increasing diversity in the workplace. This is the first majority vote in the 2017-2018 proxy season and is the highest vote ever received for this type of proposal.

During a moment of heightened awareness concerning harassment and discrimination against women and minorities in the workplace, this vote is a turning point. It demonstrates that these concerns are shared by a wide range of investors. It is our responsibility as investors to make sure companies provide greater disclosure and improve diversity, equity, and inclusion at all levels of the companies in which we invest. A 2015 McKinsey & Company report found that companies in the top quartile for gender or racial ethnicity are more likely to financially outperform national industry medians and, specifically, companies with greater ethnic diversity were 35% more likely to outperform.[1] Diversity is good for business and good for society. We will continue to urge Palo Alto Networks to take the next steps to strengthen its commitment to diversity and inclusion in the workplace and disclose its EEO-1 data.

[1] https://assets.mckinsey.com/~/media/857F440109AA4D13A54D9C496D86ED58.ashx

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For more information: Caroline White, Communications Manager, cwhite[at]trilliuminvest.com

Important disclosure: The information provided in this material should not be considered a recommendation to buy or sell the security mentioned. It should not be assumed that investments in such security has been or will be profitable. To the extent a specific security is mentioned, it was selected by the authors on an objective basis to illustrate views expressed in the commentary and it does not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is for informational purposes and should not be construed as a research report.

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