The UAW’s healthcare trust’s emergence as a force on Wall Street

The UAW Retiree Medical Benefits Trust was designed to be so big, with so many members, that it would have influence with the health care community when it negotiated rates.

With 750,000 Detroit Three retirees and $50 billion to $60 billion in assets, the trust wields mighty clout.

What was not foreseen, however, or at least publicly discussed, was how it would evolve into an activist shareholder capable of pressuring the likes of Amgen, McDonald’s, Walmart and Walgreens.

Over the last three years, the Trust, also known as a VEBA, has fought for greater transparency when it comes to political donations, lobbying and the pricing of expensive drugs and medical treatments, among other issues.

It has led at least six corporate governance initiatives including pushing for more transparent lobbying activity, stricter executive compensation policies and pushing for small investors to have more of a say in the nomination of directors.

via The UAW’s healthcare trust’s emergence as a force on Wall Street.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s