Organization: CBRE Group, Inc

Year: 2019

Resolved: Shareholders of CBRE Group, Inc. (the 'Company') request that the Board of Directors prepare a report on the impact of mandatory arbitration policies on the Company's employees. The report shall evaluate the risks that may result from the Company's current mandatory arbitration policy on claims of sexual harassment. The report shall be prepared at reasonable cost and omit proprietary and personal information, and shall be made available on the Company's website no later than the 2020 annual meeting of shareholders.

Supporting Statement:Sexual harassment in the workplace has become a significant social policy issue. A 2018 national survey found that 81 percent of women and 43 percent of men reported experiencing sexual harassment and or assault in their lifetime. 38 percent of women and 13 percent of men said they experienced sexual harassment at the workplace. ('The Facts Behind The #MeToo Movement A National Study on Sexual Harassment and Assault,' Stop Street Harassment, February 2018). We believe that the mandatory arbitration process is ill suited to remedy sexual harassment claims by employees. The secrecy of proceedings and arbitrators' decisions means potential witnesses may not learn of claims or get the opportunity to testify. According to a February 2018 letter from 56 attorneys general of the States, District of Columbia, and territories, arbitration perpetuates the 'culture of silence that protects perpetrators at the cost of their victims.'). Institutional investors are increasingly focusing sexual harassment as an investment risk, many of whom may be clients of the Company. The Financial Times recently reported on ways institutional investors have 'put asset managers under a microscope' on the issue of sexual harassment (Walker, Danielle, 'Pension funds lead charge to expose Wall St sexual offences,' Financial Times, June 3, 2018). According to Pensions & Investments, the headline risk of sexual harassment is a concern to institutional chief investment officers 'regardless of whether trustees have formally approved sexual harassment due diligence practices' in investment policy statements, (Williamson, Christine, 'Money managers get caught up in #MeToo movement,' Pensions & Investments, September 3, 2018). The Company settled a 2002 class action lawsuit for sexual harassment in 2007. (Vincent, Roger, 'Women settle with big realty company,' Los Angeles Times, October 6, 2007). A Company spokesperson recently told Bloomberg that it implemented its mandatory arbitration policy for Company employees in the 'early 2000's.' (Hussein, Fatima and Hassan Kanu, 'CBRE Labor Board Case Is Bellwether' for Forced Arbitration,' Bloomberg BNA, August 9, 2018). In our view, it is no longer socially acceptable to deny victims of sexual harassment their day in court. Many large employers including Microsoft, Google, and Facebook have recently rescinded their mandatory arbitration policies for sexual harassment claims. We believe the Board of Directors should evaluate the risks of the Company's current mandatory arbitration policy and report to shareholders. For these reasons, we urge you to vote FOR this proposal.