Fair Observer publishes CICTAR op-ed on Merck shareholder transparency push

CICTAR principal analyst, Jason Ward, writes in ‘Fair Observer’ about growing pressure on Merck and Co. one of the world’s largest pharmaceutical companies from investors and governments over its global tax practices.

Jason outlines how other global companies will face similar demands for transparency as the public pushes back against tax dodging and calls for fairer funding of public services.

On May 27, 2025, nearly one-quarter of shareholders at Merck & Co. (MRK, known outside of North America as Merck Sharp & Dohme or MSD), one of the largest in the big pharma sector, voted in favor of greater tax transparency. While this will not immediately change corporate practices, it demonstrates that a significant portion of global investors continue to support greater tax transparency. Corporate executives would be foolish not to take note.

This resolution follows others at Microsoft, Amazon, Cisco and Brookfield in previous years, which received similar levels of shareholder support. The significant level of support on a new issue is impressive since prior to these recent efforts, tax transparency had been rarely raised by investors at North American corporations. The prevailing narrative has been that the less tax a corporation pays, the more profits for investors, but it is now shifting.

Investors are aware that aggressive tax avoidance has its risks. Likewise, long-term investors want corporations to compete based on quality, innovation and smart business strategies rather than a willingness and ability to exploit short-term loopholes.

Merck can hide its murky profit shifting and tax dodging for a bit longer, but greater tax transparency is coming soon. Some global companies, over 150, are leading the way now. Others will linger in the dark as long as possible before being forced out into the sunlight.