ACSR Meeting Faces Flood of Resolutions

A large increase in the number of corporate proxy resolutions up for consideration this spring by the Advisory Committee on Shareholder Responsibility (ASCR) may slow the group's efforts to review more general investment policy issues, members said this week.

A three-fold increase in annual proxy resolutions--shareholder initiatives designed to force companies to revise their policies--has thus far prevented the ACSR from discussing broader issues. This spring, issues including Harvard's investments in companies involved in space weapons and nuclear waste could be discussed, said Professor of Business Administration John J. Gabarro, the head of the student-faculty-alumni committee.

The 12-member ACSR regularly advises the seven-man governing Corporation on how to vote on proxy resolutions. But in the past the group has spent the largest portion of its time suggesting changes in Harvard's investment policy for its $3.2 billion endowment, especially the $416 million invested in South Africa-related companies.

Gabarro said he does not know when the committee, which met Monday, will develop its agenda for the spring. "We're still sort of feeling our way," said Charles A. Arena '55, one of four alumni committee members. "I don't know if we've gotten to the meat of things yet," he said.

The number of ACSR proxy resolutions increased from 31 to roughly 90 in the last year due to a change in Securities and Exchange Commission laws making proxies easier, Gabarro said.

At its Monday meeting, the ACSR "dealt with repeats, with resolutions which had strong precedent, and with resolutions we thought we could treat in groups," Gabarro said.

Relying heavily on precedents from past years, the ACSR made decisions on 43 proxies--almost half of its spring load--at the meeting, Gabarro said.

The ACSR will not release the results of its votes until after the Corporation's Committee on Shareholder Responsibility, which has final say over Harvard holdings, has decided whether to follow the advisory committee's recommendations.