A derivative shareholder has been brought against The Gap who is prosecuting the dealer for breach of administrative duty, inter alia, due to its all-white board and executive committee and urging to replace at least two of its current board members with black board members.
The lawsuit filed in the U.S. District Court in San Francisco on Tuesday accuses the San Francisco-based company of failing to have a black CEO or board member despite declaring it a "business imperative," according to complaint in Noelle Lee, derived on behalf of The Gap Inc. vs. Robert J. Fisher et al. and Gap Inc.
The lawsuit, first reported in the D&O Diary blog, contains photos of The Gaps board and top executives.
Despite its statements to the contrary, the company "has failed to create any real racial or ethnic diversity at the top of the company in its board and executive management team," the complaint states.
It has "deliberately failed to implement Gaps' written proclamations of increased diversity in their ranks, “The complaint states . It claims that when the company employs African Americans and other minorities, "it employs them overwhelmingly for low and low paid jobs in its distribution centers."
The complaint states that African America accounts for only 4% of its headquarters but 23% of the workers in its distribution centers.
The fees in the complaint include breaches of the custodial duty, abuse of control, unfair enrichment and violations of securities laws.
In addition to requesting a resolution that would require the company to replace at least two current board members with black board members, it is also seeking a proposal to introduce a pay ban to help eliminate the racial pay gap. It also calls on all directors accused of repaying their compensation for 2020 and donating it to an acceptable charity or organization whose efforts include promoting blacks and other minorities and creating a $ 700 million fund to hire blacks and other minority workers and promote them to more leaders positions, among other measures.
The company did not respond to a request for comment.