<SEC-DOCUMENT>0001214659-21-003366.txt : 20210324
<SEC-HEADER>0001214659-21-003366.hdr.sgml : 20210324
<ACCEPTANCE-DATETIME>20210324091910
ACCESSION NUMBER:		0001214659-21-003366
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20210324
DATE AS OF CHANGE:		20210324
EFFECTIVENESS DATE:		20210324

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JOHNSON & JOHNSON
		CENTRAL INDEX KEY:			0000200406
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				221024240
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			0103

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03215
		FILM NUMBER:		21766816

	BUSINESS ADDRESS:	
		STREET 1:		ONE JOHNSON & JOHNSON PLZ
		CITY:			NEW BRUNSWICK
		STATE:			NJ
		ZIP:			08933
		BUSINESS PHONE:		732-524-2455

	MAIL ADDRESS:	
		STREET 1:		ONE JOHNSON & JOHNSON PLZ
		CITY:			NEW BRUNSWICK
		STATE:			NJ
		ZIP:			08933

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Mercy Investment Services, Inc.
		CENTRAL INDEX KEY:			0001699865
		IRS NUMBER:				263224636
		STATE OF INCORPORATION:			MO
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		2039 NORTH GEYER ROAD
		CITY:			ST. LOUIS
		STATE:			MO
		ZIP:			63131
		BUSINESS PHONE:		314-909-4609

	MAIL ADDRESS:	
		STREET 1:		2039 NORTH GEYER ROAD
		CITY:			ST. LOUIS
		STATE:			MO
		ZIP:			63131
</SEC-HEADER>
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<SEQUENCE>1
<FILENAME>d32421px14a6g.htm
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">INCENTIVE DEFERRAL AT JOHNSON &amp; JOHNSON</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Commentary on Shareholder Resolution Seeking
Establishment of a Deferral Period for Short-Term Bonuses</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Contact: <I>Tom McCaney, Associate Director, Corporate Social Responsibility,
Sisters of St. Francis of Philadelphia, at tmccaney@osfphila.org </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">March 23, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Fellow Johnson &amp; Johnson Shareholder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Sisters of St. Francis of Philadelphia seek your support for <B>Proposal
7 on the Johnson &amp; Johnson</B> (&ldquo;JNJ&rdquo;, or &ldquo;the Company&rdquo;) 2021 proxy card (the &ldquo;Proposal&rdquo;). Under
the proposal, JNJ would defer a certain portion of senior executives&rsquo; annual incentive pay for a specified time period, both to
be determined by the Compensation &amp; Benefits Committee, to permit an informed review of whether a bonus award was warranted in light
of subsequent events and to facilitate any adjustments resulting from use of the Company&rsquo;s recoupment policy from the deferred portion
of that award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Sisters of St. Francis of Philadelphia, filers of this proposal,
are long-term shareholders of JNJ stock and have engaged with company representatives many times in an effort to collaboratively seek
pathways to resiliency and sustainability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Rationale to vote FOR this proposal</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe a bonus deferral policy is urgently required at JNJ given
the acute legal, financial and regulatory risks facing the Company. Specifically, we note the following detailed in JNJ&rsquo;s own 2020
Form 10-K filing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>JNJ potentially faces billions of dollars in costs tied to its role in the opioid crisis;<BR>

</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Company faces ongoing regulatory inquiries related to its opioid marketing practices; and<BR>

</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Company faces additional multi-billion dollar costs associated with talc litigation.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In our view, JNJ&rsquo;s current compensation practices fail to adequately
address these risks. JNJ shareholders are exposed to billions of dollars in liabilities and costs, forming a worrisome pattern of systemic
weaknesses in the Company&rsquo;s compliance practices, with no evidence that top executives have received a dollar less in incentive
pay as a result of this exposure. We believe that a bonus deferral policy is critical to aligning management&rsquo;s interests with those
of long-term shareholders and ensuring accountability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, we believe that adoption of a bonus deferral policy is
appropriate for the following reasons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><U>Facilitates the Use of the Recoupment and Allows Flexibility in Reducing Annual Payouts</U>. A bonus deferral policy offers a straightforward
mechanism to recoup annual awards under the Company&rsquo;s recoupment policy, which could otherwise require legal action and the expenditure
of additional company time and resources. This policy also allows for adjustments in payouts based on late-arriving information related
to senior executives&rsquo; conduct or the sustainability of the financial results on which an award was based. A bonus deferral policy
would enhance JNJ&rsquo;s ability to use its recoupment policy and we believe that it could serve a retention focus as well.<BR>

</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>1</SUP></FONT>
<I>See</I> Johnson and Johnson&rsquo;s 2020 Annual Report on Form 10-K, at 93-98. (https://www.sec.gov/ix?doc=/Archives/edgar/data/200406/000020040621000008/jnj-20210103.htm).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">This is not a solicitation of authority to vote
your proxy. Please DO NOT send us your proxy card--the Sisters of St. Francis of Philadelphia is not able to vote your proxies; vote your
proxies in accordance with the instructions in JNJ&rsquo;s proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><U>Similar to Policies Widely Adopted in the Banking Industry and at Some Other Pharmaceutical Companies</U>. A bonus deferral policy
like the one requested in the Proposal is similar to arrangements that have been widely adopted in the banking industry, following the
last financial crisis. In 2009, the Financial Stability Board (FSB), which coordinates national financial authorities in developing strong
sector policies, adopted &ldquo;Principles for Sound Compensation Policies&rdquo; and related &ldquo;Implementation Standards&rdquo;,
which included bonus deferral policies. Deferral policies were considered &ldquo;particularly important&rdquo; because they allow for
&ldquo;late-arriving information about risk-taking and outcomes&rdquo; and reduce the need to recoup compensation already paid out, which
may &ldquo;fac[e] legal barriers&rdquo;. The sixth progress report on these FSB Principles noted in 2019 that banking supervisors in 16
FSB jurisdictions, including the U.S., now have requirements or expectations regarding bonus deferral.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Rebuttal to the Company&rsquo;s Opposition Statement follows:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As investors, we encourage transparency and accountability in corporate
compensation policies. JNJ&rsquo;s statement in opposition to the Proposal states:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B><I>The Compensation &amp; Benefits Committee already has the discretion to defer senior executive annual incentive awards. </I></B>A
Board committee&rsquo;s discretion is not a firm policy. We seek to codify the deferral period as the standard practice to ensure that
unnecessary risks for short-term gain are not rewarded.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B><I>Approximately two-thirds of JNJ executives&rsquo; compensation is delivered in the form of long-term incentives that are already
deferred for three years.</I></B> The Proposal clearly states (in the resolved clause) that it would apply only to awards under short-term
incentive plans. We do not dispute that two-thirds of executive compensation is related to long-term incentives, but ask that any short-term
incentives be subject to a potential deferral period.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B><I>The Company has robust recoupment policies and stock ownership guidelines that further align the interests of our executives
with the long-term interests of our shareholders.</I></B> Recoupment can be difficult and can result in litigation costing the Company
time and money.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B><I>The Company has demonstrated its commitment to safeguarding against inappropriate risk-taking.</I></B> The lawsuits and investigations
referenced earlier indicate that additional safeguards are warranted.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>CONCLUSION</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">JNJ&rsquo;s significant risk exposure and troubled history of lawsuits,
investigations, settlements, and fines suggest a compensation system that rewards, or at the very least, insufficiently discourages short-term
gains at the risk of sustainable long-term growth. <B>Therefore, we urge shareholders to vote <U>FOR </U>Proposal 7 following the instructions
provided in the Company&rsquo;s proxy statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">This is not a solicitation of authority to vote
your proxy. Please DO NOT send us your proxy card--the Sisters of St. Francis of Philadelphia is not able to vote your proxies; vote your
proxies in accordance with the instructions in JNJ&rsquo;s proxy statement.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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