RFK Compass Investors Applauds NY State Common Retirement Fund for Supporting Ending the Subminimum Wage
At an October 19 investor and legislator briefing co-hosted by RFK Compass Investors in New York City, Tom DiNapoli, New York State comptroller, shared the actions the New York State Common Retirement Fund is taking to end the subminimum wage as part of a coalition effort calling for One Fair Wage. The fund is a shareholder in the Cheesecake Factory, the Walt Disney Company, Darden Restaurants, Denny’s Corp., and Brinker International. DiNapoli said protecting the rights of workers to earn a fair and livable wage is a priority. “The fund has long believed that a company’s long-term success is inextricably tied to its human capital management policies and practices, including compensation and benefits,” he said. “Research has shown a link between effective human capital management practices and higher shareholder returns, profitability, and overall firm performance against benchmarks.”
During the briefing, he outlined four key areas for companies to consider:
Public position on a potential increase to the federal minimum wage for all employees.
Provision of a full minimum wage to its tipped employees, with tips on top, in all states where the company operates.
Assessment of the potential costs and opportunities related to an increased minimum wage for all employees.
Evaluation of lobbying efforts against an increased minimum wage of industry group memberships vs. company values and strategies.
We urge asset owners and asset managers who are exposed to companies whose employees are forced to rely on tips to leverage their shareholder heft for the benefit of workers. Contact us to find out how we can guide you to take action.