Trump’s H1B Fee Sparks Concerns

Proxy advisor SOC Investment Group, which primarily works with pension funds affiliated with the Strategic Organizing Center union, has asked the three companies to explain how they will address workforce disruptions tied to Trump's proposed $100,000 fee on new H-1B visa approvals, according to a Reuters report.

These companies have been cherry-picked for their outsized exposure to immigration disruptions, being the largest employers of H1B workers in the U.S.

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SOC’s executive director, Tej Patel, noted that the availability of skilled labor is a critical issue that impacts the “long-term performance of a company,” while adding that not being able to hire the right people could impair value.

The group holds less than 1% in each company but, along with allied funds, collectively owns tens of millions of shares across the three tech and retail giants.

In letters addressed to the companies, SOC has also pushed Amazon and Walmart to disclose how other immigration enforcement actions, such as farm raids, are affecting their logistics and supply chain operations.

The SOC has urged the companies to print its resolutions in their upcoming proxy statements, with Patel adding that “litigation” is on the table, in case they refuse.

Crackdown On Proxy Advisors

This comes days after Trump signed an executive order demanding better regulations to limit the powers of proxy advisors such as Institutional Shareholder Services (ISS) and Glass Lewis.

Price Action: Alphabet shares were down 3.14% at $298.06, Amazon.com shares were down 0.58% at $221.27 and Walmart shares were up 0.21% at $115.66 while the market was closed on Wednesday, according to Benzinga Pro data.

Amazon shares score high on Growth and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the long term. Click here to see how it compares with competitors such as Google-parent Alphabet and retail giant Walmart, along with other key insights.

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Image via Shutterstock/ Cristian Storto