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October 8, 2003
The Securities and Exchange Commission took a major step today
in recognizing that shareholders have a fundamental right to have access to the
proxy. However, questions remain as to the triggers that are
being proposed; we need triggers that are responsive to the
corporate crises of the past year, and we must define appropriate
threshold s for these triggering events. The final rule should
be sensitive to the very issues concerning corporate financial
malfeasance that have plagued our markets.
CalSTRS is committed to making recommendations to the SEC
that will support reasonable and balanced thresholds. As long-term
owners, we know full well that this rule can provide needed
shareholder protections that serve to strengthen our market
system. We also urge business organizations that might actively
oppose its adoption to understand its limited application
and recognize that investors both large and small support
this important right.
As Californians, we understand the power of the ballot.
We now stand in sight of the finish line after many years of moving forward and backwards
on the issue of shareholder access – it is time to take
this final step in support of shareholders. In the coming
weeks, our board will be reviewing the proposal and making
formal comment to the SEC. We will also be encouraging our
nearly three-quarter million members to make their concerns
known.
CalSTRS is the third largest public pension fund in the
U.S., with a $105 billion investment portfolio. The pension
system serves approximately 715,000 members and benefit recipients
by providing retirement, disability and survivor benefits
to California's public school educators in grades kindergarten
through community college. Those benefits are guaranteed by
law and are not affected by changes in the investment portfolio.
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