Active Ownership Successes 2

Strong Vote Totals
For the fourth year in a row, CBIS led members of the Interfaith Center on Corporate Responsibility (ICCR) in filing a resolution at Time Warner that asked the company to separate the positions of CEO and Chairman of the Board. Our concern is the excessive compensation paid to the top executive team given the company’s poor corporate performance and widespread layoffs. The resolution received a strong 44% vote at the company’s May annual meeting. Our resolution argued that greater accountability to shareholders would result from separating the two positions.

Due to the strong vote total, CBIS subsequently led ICCR members in a discussion with Time Warner’s senior management and with the chair of the board’s Nominating and Governance Committee. The company is discussing a potential policy on the leadership structure of the board which we are presently reviewing. We look forward to a continued dialogue.

The resolution that we co-filed (led by Sisters of St. Dominic of Caldwell) at ExxonMobil asked the company to set specific goals for reducing greenhouse gas emissions and to report to shareholders on these goals. The resolution received 31% of votes cast. CBIS also participated in a press strategy with 19 institutional investors — who hold 91 million shares of ExxonMobil and have more than $740 billion in combined assets under management — asking the company to better address climate change risks and opportunities.

Concluded Dialogues
In 2008, we concluded dialogues at Tyco, DuPont, Schering-Plough and Mattel. We achieved our major objectives at Tyco after many years, as two years ago the company developed environmental, health and safety policies in cooperation with CBIS and published a corporate social responsibility report. After several years of asking DuPont to report on the risks to its business associated with the hazards of genetically modified organisms, we will discontinue our engagement after the resolution did not receive enough votes to be refiled. In 2008, CBIS divested from Schering-Plough after it acquired a unit of a company that was restricted under our life ethics Principled Purchasing criteria. The lead filer at Mattel chose not to continue its engagement with the company.