CalSTRS Corporate Governance Releases Proxy Season Summary Report

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Staff voted on 77,461 proxy proposals at 7,923 meetings

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As long-term investors, we believe the right to nominate director candidates to the proxy is a fundamental shareholder right that should be in place at all companies

The California State Teachers’ Retirement System’s Corporate Governance staff wrapped up this year’s proxy season where the dominant governance issue was proxy access. Proxy access made up more than 28 percent of the governance proposals compared to 6 percent in 2013–14.

“CalSTRS supported 83 of the 87 proxy access proposals because they were modeled after the SEC’s three-and-three rule, which aligns with CalSTRS Corporate Governance Principles. And 49 of the 83 proposals garnered more than 50 percent shareholder support,” said Anne Sheehan CalSTRS Director of Corporate Governance. “As long-term investors, we believe the right to nominate director candidates to the proxy is a fundamental shareholder right that should be in place at all companies.”

Three-and-three refers to the SEC threshold in which a shareholder or group of shareholders that owns at least 3 percent of outstanding shares for at least three years, has the right to nominate directors to the company.

CalSTRS Corporate Governance staff considered 13 other types of major shareholder proposals this proxy season. One type environment–related proposals increased substantially from 69 in fiscal year 2013–14 to 90 in fiscal year 2014–15.

“CalSTRS has definitely seen a shift in the dialogue when it comes to environmental, social and governance issues. Our engagement with companies pushed the reporting of energy risks and improved energy efficiency,” stated Ms. Sheehan.

CalSTRS Corporate Governance Summary of Proxy Votes – Fiscal Year 2014-15 is available on our website.

The California State Teachers’ Retirement System, with a portfolio valued at $184 billion as of August 31, 2015, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. CalSTRS serves California's 879,000 public school educators and their families from the state’s 1,700 school districts, county offices of education and community college districts. Follow us on Twitter @CalSTRS

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