Jack Henry & Associates, Inc. (JKHY) — ESG & Values Scores

Environment story

JKHY has not disclosed Scope 1, 2, or 3 emissions data in available filings. No net-zero target or climate commitments are documented. The company faces material climate risk exposure through reliance on third-party data centers and cloud infrastructure whose energy consumption may be rising with AI/ML deployment expansion. No verified decarbonization infrastructure investments are disclosed. Environmental performance is severely constrained by absence of baseline emissions reporting and net-zero commitments. The company acknowledges climate change increases likelihood of severe weather events affecting operations but provides no mitigation strategy beyond generic disaster recovery language.

Criticisms on file

No disclosed emissions inventory or reduction targets despite operating large-scale data center and cloud infrastructure. Rising Scope 3 risk from AI/ML deployment acceleration not addressed.
Source: JKHY 10-K FY2025, Risk Factors; MD&A notes AI/ML expansion but no environmental impact disclosures.

Disclosed initiatives

Climate Risk Acknowledgment in Risk Factors

10-K discloses that climate change may increase likelihood and severity of natural disasters (tornados, flooding, hurricanes, heat waves) affecting outsourcing operations and physical facilities.

Reactive risk disclosure; no proactive mitigation or reduction targets disclosed.

Social story

JKHY discloses CEO-to-median-worker pay ratio of 75:1 for FY2025 (CEO Adelson $7,016,992 vs. median employee $93,193), below the 200:1 penalty threshold. Workforce of ~7,240 employees; company reports recognition as best workplace by US News and Time Magazine. Board includes 3 women out of 10 directors (30%), meeting minimum diversity threshold. No documented union-suppression activities or major strikes in past 24 months are disclosed. Supply chain labor practices for third-party vendors and outsourced payment processing not audited or disclosed. No living wage commitment, forced labor policy, or modern slavery statement found in available filings.

Criticisms on file

No disclosed supply-chain labor audits or human-rights due diligence for payment processors, cloud vendors, or third-party outsourcing partners. Payment processing supply chain (strategic services agreement with card networks) not audited for labor standards.
Source: JKHY 10-K FY2025 MD&A, Risk Factors, and Proxy Statement—absence of supply-chain audit disclosures.
Workforce concentration among remote/hybrid workers limits Company control over work environment and safety standards.
Source: JKHY 10-K FY2025, Risk Factors: 'substantial portion of our workforce operate in hybrid or fully remote arrangements.'

Disclosed initiatives

Workplace Recognition and Culture

Company recognized by US News as Best Company to Work for 2025-2026 and by Time as America's Best Mid-Size Company 2025. Proxy notes commitment to diversity in hiring and pay equity.

Positive external validation but no quantified pay equity audit or supplier-diversity program disclosed.
Remote and Hybrid Work Arrangements

Majority of 7,240 employees work from remote/hybrid locations (19 company locations nationwide). Introduces complexity in employee engagement and culture preservation per 10-K disclosure.

Acknowledges workforce flexibility but notes management challenges around training and corporate culture in distributed work environment.

Governance story

JKHY has 8 independent directors out of 10 (80% independence), exceeding the 75% threshold. Single-class voting structure (no dual-class supermajority); no share-structure concerns. Board Chair (David B. Foss) is non-executive; Lead Director (Matthew C. Flanigan, independent) has been in role since 2012, providing strong independent oversight. Recent bylaw amendment (May 2025) reduced special-meeting threshold from 66.7% to 25%, demonstrating shareholder responsiveness. Board committees (Audit, Human Capital & Compensation, Governance, Risk & Compliance) are fully independent. No material antitrust, privacy, or SEC consent decrees disclosed. Lobbying expenditures not disclosed. No shareholder proposals regarding climate, antitrust, or social governance received board support; 2025 proxy includes shareholder proposal on special-meeting threshold (board recommends Against), reflecting minority activist engagement.

Criticisms on file

No disclosed lobbying expenditures or trade-association alignment disclosures. Absence of transparency on political engagement and industry group positions on financial regulation, data privacy, or cybersecurity policy.
Source: JKHY 10-K FY2025 and Proxy Statement—no lobbying-spend or political-contribution disclosures found.
Shareholder proposal (Proposal 5, 2025 Proxy) seeks 10% threshold for special meetings; Board recommends Against, citing concerns over 'narrow interests' and 'short-term stock ownership manipulation.' Board resistance to further democratization of shareholder rights.
Source: JKHY Proxy Statement, Proposal 5, pages 73-74.
No antitrust or consumer-protection fines disclosed in 10-K or proxy, but company operates in highly regulated financial-services and payments ecosystem subject to CFPB, OCC, and Federal Reserve oversight. Compliance examination findings and remediation orders not disclosed.
Source: JKHY 10-K FY2025, Risk Factors: 'ongoing supervision and examination by OCC, Federal Reserve, FDIC, CFPB, NCUA.' No material regulatory actions disclosed.

Disclosed initiatives

Board Independence and Lead Director

8 of 10 directors are independent. Lead Director (Matthew C. Flanigan, independent since 2007) chairs executive sessions of independent directors and coordinates independent oversight. Board meets minimum 5 times annually with full access to management throughout the year.

Strong independent governance structure; executive sessions ensure director independence from management.
Recent Bylaw Amendment for Shareholder Rights

May 2025 amendment to Bylaws reduced stockholder threshold to call special meeting from 2/3 (66.7%) to 25%, effective immediately. No holding period required; no restrictions on subject matter.

Demonstrates responsiveness to shareholder governance concerns; aligns with market practice (25% is most common S&P 500 threshold per FactSet research cited in proxy).
Committee Structure and Risk Oversight

Four Board committees: Audit (Chair: Thomas H. Wilson, Jr.), Human Capital & Compensation (Chair: Tammy S. LoCascio), Governance (Chair: Curtis A. Campbell), and Risk & Compliance (Chair: Thomas A. Wimsett). All committees fully independent. Risk and Compliance Committee oversees enterprise/operational risk, cybersecurity, and information security; reports from Chief Information Security Officer to committee.

Comprehensive committee structure distributes governance oversight; cybersecurity and data-security risks escalated to board-level committee.
Majority-Vote Director Election

Corporate Governance Guidelines require directors to be elected by majority vote of votes cast (not plurality). Losing directors must submit resignation; Governance Committee reviews and recommends to Board within 90 days.

Directors accountable to shareholders; resignation mechanism provides accountability lever.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Jack Henry & Associates, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Jack Henry & Associates, Inc. in the app for interactive charts and portfolio building.

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