Merck Votes Overwhelmingly in Support of DEI Amid Backlash

Merck’s shareholders have rejected a proposal from the National Legal & Policy Centre (NLPC) urging the company to end its diversity, equity and inclusion programmes.

The vote – which took place on 27 May at the pharmaceutical giant’s AGM – was a landslide, with 99% of shareholders voting to stand behind the company’s DEI policies.

Paul Chesser, who delivered the NLPC’s proposal at the meeting, told Merck’s shareholders that they were being “gaslit” by the company and that Merck’s executives were being “materially misleading” in their communications with shareholders regarding DEI.

The overwhelming result is a clear endorsement of the company's commitment to DEI in the face of growing pressure from conservative activist groups and government officials across corporate America.

CEO defends diversity as 'strategic imperative'

Merck’s Chairman and CEO Rob Davis used the annual general meeting to reinforce the company's position on diversity and inclusion policies.

"Our company has a longstanding commitment to diversity and inclusion," he told shareholders during the question-and-answer session.

"It's at the core of who we are, our values and how we operate as a company. It's also a strategic imperative."

Rob emphasised that the approach enables the company to "fully execute on the scientific method and catalyse contributions and innovations from across the enterprise".

The NLPC’s problem with Merck’s payment structure

The rejected proposal came from the National Legal and Policy Center, a conservative lobbyist that has targeted multiple corporations over their diversity programmes in recent months.

The NLPC called on Merck to review and "consider eliminating discriminatory DEI milestones" from executive compensation packages.

Such milestones typically tie portions of senior leadership pay to achieving specific diversity targets within the organisation.

Despite the efforts of the NLPC, the Merck board overwhelmingly recommended shareholders vote against the proposal, arguing in proxy materials that continuous analysis ensures programmes "support the Company's strategic, financial and human capital objectives”.

Corporate resistance across corporate America

Merck's decisive rejection of the anti-DEI proposal places it in the ranks of several other major corporations that have faced and rejected similar challenges from conservative shareholder activists in 2025.

Those companies, including Costco, Apple and Levi's, have all seen shareholders vote overwhelmingly to maintain existing diversity programmes despite organised opposition.

Despite these high-profile cases, corporate America remains polarised on DEI, as many other companies have acted in accordance with the desires of US President Donald Trump.

The context and implications for Merck

During his response to shareholders, Rob invoked company founder George Merck's philosophy to justify the firm's approach.

"We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear," he quoted.

The CEO argued this principle has guided operations "for over 130 years, and ultimately creates shareholder value as well as value for all of our stakeholders".

The resounding shareholder support provides Merck's leadership with a clear mandate to continue existing diversity programmes without modification.

However, the company faces ongoing scrutiny from activist groups that view DEI initiatives as potentially discriminatory rather than inclusive.

As one of the world's largest pharmaceutical companies, Merck's stance may influence how other major corporations respond to similar pressure campaigns.

The 99-1 vote margin suggests shareholders view diversity programmes as commercially beneficial rather than politically motivated.

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