Vericel Corporation - 1792 Exchange

Rating Overview

Vericel Corporation is Medium Risk.

Vericel Corporation is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. Vericel implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Lower Risk
Political Actions	No Data

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Vericel integrates ESG into its business practices. From its 2022 Proxy Report: “…a portion of annual incentive compensation was tied to achieving ESG-related goals…” (1). However, the company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (2).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Vericel does not appear to discriminate against charitable organizations based on views or beliefs (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

Vericel offers unconscious bias training to its executives and managers, and DEI training to its employees (1)(2). The company appears to prioritize diversity over merit in its recruitment, hiring, promotions, and leadership composition. From its 2022 Proxy Report: “Workforce Diversity Through Recruitment and Development: Vericel commits significant time and resources towards initiatives that enable us to successfully recruit talented individuals who represent a broad range of personal and professional backgrounds…” (3). From Vericel’s 2024 Proxy Report: “…annual analyses of Vericel’s Affirmative Action Plan…have not identified any statistically significant deficiencies for the hiring and advancement of women and minorities since the Plan’s inception in 2016” (4). From its 2021 Proxy Report: “…the Board formalized its longstanding practice of considering women and minority candidates for open director positions by amending the Charter of the Governance Committee and its Director Nominations Policy to clearly state that in filling each open director position the Governance Committee will endeavor to actively seek out highly-qualified diverse candidates (including diversity on the basis of gender, race and ethnicity) (5). Vericel is an affirmative action employer. “Vericel Corporation is an Equal Opportunity/Affirmative Action Employer” (6)(7). The company does not provide viewpoint protections for its employees (8).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Vericel supports DEI within its business practices, hosting a DEI Committee (1). The company supports DEI and ESG within its business practices. From its 2021 ESG Report: “The Committee works to integrate DEI into corporate initiatives, policies, and programs” (2). From Vericel’s 2024 Proxy Report: “Vericel’s commitment to ESG permeates all levels of the organization…” (3).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Lower

Rationale:

Vericel has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

N/A

Rationale:

Vericel does not operate a PAC or engage in lobbying at this time (1)(2)(3).