(The Associated Press circulated the following article on May 5.)
SALT LAKE CITY — Union Pacific Corp. shareholders rejected a proposal Thursday that would have required the nation’s largest railroad to hire its next board chairman from outside the company.
That proposal was made by the International Brotherhood of Teamsters, which has pension interests in Union Pacific.
The Teamsters union, which represents locomotive engineers and others at Union Pacific, also used the meeting to raise a concern about a ”glaring lack of security” along rail lines that span Chicago to Los Angeles. The union said rail cars, especially chemical tankers, were vulnerable terrorist targets.
Shareholders also defeated a proposal, made by New York City public workers with pension investments in Union Pacific, to force the company to make regular disclosures of political contributions in reports separate from government filings.
Company directors and officers said they contribute corporate funds by policy and not by whim, and that they provide enough disclosure to the Federal Elections Commission, which enforces federal campaign finance laws, and state agencies.
The New York City pension funds — for teachers, police, firefighters and other public employees — said that FEC filings disclose only the company’s federal donations, while state disclosure laws vary. They sought complete disclosure so shareholders can easily evaluate the political use of corporate funds at once.
Shareholder approved a proposal by the Sheet Metal Workers requiring that Union Pacific directors earn the votes of a majority of all shareholders, and not just a majority of the shareholders who voted.
The sparsely attended shareholders’ meeting was held by tradition in Salt Lake City, where Union Pacific was incorporated, even though company headquarters are in Omaha, Neb.
Union Pacific operates 38,654 miles of track in 23 states from the Midwest to the West and Gulf coasts.