NYC Pension Funds Warn Hollywood Giants: Resolve Strikes or Risk Investments
Trustees of New York City's five major pension funds, collectively handling a whopping $250 billion, have issued a stern warning to three of Hollywood's biggest players - Disney, Paramount, and Comcast. The message? End the ongoing Writers Guild (WGA) and SAG-AFTRA strikes or risk damaging investor confidence. The WGA strike, which started on May 2, has been closely followed by the SAG-AFTRA strike since July 14.
Headed by New York City Comptroller Brad Lander, the clear and unequivocal letters to each company stress the importance of prompt resolution to the strikes. Citing the potential threat to the long-term stability of their businesses and the shareholders' investments, the trustees want an end to the labour unrest.
Disney cease and desist was signed to CEO Bob Iger, duly noting the pension funds' sizeable stake in the company. The funds own approximately 2.7 million shares of Disney, valued around $229.2 million. Comcast chairman and CEO Brian Roberts received a similar note, reminding him of the pension funds' nearly 6.3 million shares in Comcast, smaller by number but richer in value at $272.7 million.
Paramount Global's President & CEO Robert Bakish was served with a relatively less impressive but still significant note. The pension funds are long-term Paramount Global shareholders with a combined value of more than $10 million in class A and B shares.
Each letter stressed the pension funds' strong belief that strong labour management relations are essential for managing human capital and creating long-term shareholder value. These funds cater to New York City’s educational and public service sectors, including teachers, city employees, police officers, firefighters, and the board of education. They collectively go by the acronym NYCRS.
In a rather ominous tone, Lander explicitly mentioned his concern that the WGA and SAG-AFTRA strikes could expose NYCRS's investments to "undue risk", and that unresloved business practices might threaten the stability of investments in the long run.
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That's it for the hard facts, folks. Now on to my thoughts on the ordeal. The trustees’ veiled threat, though slightly more delicate than a bag of bricks, certainly puts the executives in the hot seat. When pension funds jangle the keys to their considerable cash-filled lockers, it's difficult not to pay attention.
Subtly is certainly not a go-to move here. Lander, on behalf of NYCRS, has unambiguously reminded these entertainment giants that they have more to worry about than just their bottom line. It's not just a headache, folks, it's a full blown migraine and potential long-term damage to investor relationships, with their names squarely held responsible.
NYCRS investment size is nothing to scoff at. This isn't the distant chatter of small fry investors. No, these are the big guns and their message to Hollywood? Clear as daylight. Get it together. Maintain proper labor relations or we might just reconsider where our considerable funds are parked.
And this, ladies and gentlemen, isn't just a squabble over creative rights and artistry. It's a face off between the money-makers and the money-holders. And when $250 billion of city pension funds twitch nervously, Hollywood best pause the drama and take notice.
