CalSTRS’ Statement on the SEC Proposed Rule for Executive Compensation Disclosure
WEST SACRAMENTO, CA – Yesterday, the Securities and Exchange Commission released a proposed rule that would require all public companies to disclose a comparison of the Chief Executive Officer’s (CEO) compensation to that of the median income of company employees—otherwise known as pay ratio disclosure. CalSTRS Director of Corporate Governance Anne Sheehan issued the following statement:
“CalSTRS applauds Chair Mary Jo White and the Securities and Exchange Commission for their efforts to draft the hundreds of rulemakings required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The pay ratio disclosure is just one of the many mandated rules required by this landmark piece of legislation. Disclosure of this metric will provide investors another input as they review executive compensation at the companies in which they invest. At CalSTRS, we see this disclosure as an important addition to our process as we cast votes for say on pay. CalSTRS looks forward to reviewing the proposal and providing comments.”
The California State Teachers’ Retirement System, with a portfolio valued at $170 billion as of July 31, 2013, 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. For 100 years, CalSTRS has served California’s public school educators and their families, who today number 862,000 from the state’s 1,600 school districts, county offices of education and community college districts.