Political Contributions | Interfaith Center on Corporate Responsibility

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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>Cadence Design Systems, Inc.</p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Lobbying & Political Contributions </p>
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<strong>Focus Area:</strong>
<p>Political Contributions </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>RESOLVED</strong>: Shareholders request that Cadence Design Systems prepare and annually update a report, which shall be presented to the pertinent board of directors committee and posted on the Company’s website, disclosing the Company’s:<br> <br>(a) Policies and procedures for making electoral contributions and expenditures (direct and indirect) with corporate funds, including the board’s role (if any) in that process; and </p>
<p>(b) Monetary and non-monetary contributions or expenditures that could not be deducted as an “ordinary and necessary” business expense under section 162(e)(1)(B) of the Internal Revenue Code, including (but not limited to) contributions or expenditures on behalf of candidates, parties, and committees and entities organized and operating under section 501(c)(4) of the Internal Revenue Code, as well as the portion of any dues or payments made to any tax-exempt organization (such as a trade association) used for an expenditure or contribution that, if made directly by the Company, would not be deductible under section 162(e)(1)(B) of the Internal Revenue Code.<br> <br>The report shall identify all recipients and the amount paid to each recipient from Company funds. This proposal does not encompass lobbying spending.</p>
<p><strong>SUPPORTING STATEMENT</strong>: </p>
<p dir=”ltr”>Cadence long-term shareholders support transparency and accountability in corporate electoral spending. The Conference Board’s 2021 “Under a Microscope” report warns “Political activity can pose increasingly significant risks for companies, including the perception that political contributions—and other forms of activity—are at odds with core company values.” <br> <br>A recent poll of retail shareholders by Mason-Dixon Polling & Research found that 83% of respondents said they would have more confidence investing in corporations that have adopted reforms that provide for transparency and accountability in political spending.<br> <br>Cadence discloses a brief policy regarding corporate political spending to candidates, parties, and committees, and 527 groups. This is deficient because Cadence does not disclose on its website all direct and indirect corporate-funded election-related spending, particularly payments to trade associations, 501(c)(4) social welfare organizations, ballot measures, and independent expenditures. Cadence scored only 24% on a 100% scale in the 2025 CPA-Zicklin Index of Corporate Political Disclosure and Accountability <https://www.politicalaccountability.net/wp-content/uploads/2025/11/2025-CPA-Zicklin-Index.pdf> <br> <br>This proposal received 44% support at the 2025 Cadence annual meeting without any special effort by the proponent. This likely means more than 50% support from the Cadence shareholders who have access to independent proxy voting advice and who are the most informed Cadence shareholders on the merits of this proposal.</p>
<p dir=”ltr”>This proposal asks Cadence to disclose all of its electoral spending, including payments to Trade Associations and 501(c)(4) social welfare organizations, which may be used for electoral purposes–and are otherwise undisclosed.</p>
<p dir=”ltr”><br>Without knowing the recipients of our company’s political dollars Cadence directors and shareholders cannot sufficiently assess whether our company’s election-related spending aligns with or conflicts with its core policies on climate change and sustainability and other areas of concern. </p>
<p dir=”ltr”>This would bring Cadence in line with a growing number of leading companies, including ServiceNow, Inc., Marvell Technology, Inc., and Alphabet Inc., which present this information on their websites.</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> John Chevedden</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Chevedden Corporate Governance</span></div>
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