Corporate Governance News Releases

News release Michelle Mussuto

CalSTRS Corporate Governance Program Elevated Its Voice on Policy in 2016
2016 annual report highlights success of key initiatives, collaborations and a glimpse into plans for 2017

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today released its 2016 Corporate Governance Annual Report. The report highlights the Corporate Governance staff efforts in, among other issues, regulatory activities, proxy voting and portfolio company engagement.

News release Ricardo Duran

CalSTRS Corporate Governance Achieves 97 percent Success Rate in the Adoption of the Majority Vote Standard
Five-year engagement plan demonstrates better alignment of board and shareholder interests.

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today released its 2015 Corporate Governance Annual Report highlighting a successful engagement plan, which resulted in 375 companies adopting a majority vote standard.

“In 2010, CalSTRS’ Corporate Governance program implemented an engagement plan focused on 26 smaller cap companies,” said CalSTRS Director of Corporate Governance Anne Sheehan. “And, as a result of the effort, 80 percent of those companies moved from a plurality to a majority vote standard.”

News release Ricardo Duran

Majority Voting Standard Gains Ground, CalSTRS Corporate Governance Annual Report Shows
The 2nd annual report shows that 92 out of 100 companies engaged adopted majority voting

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System’s (CalSTRS) Corporate Governance 2014 Annual Report shows its engagement with small-cap companies yielded remarkable progress in the adoption of majority voting standards for the election of corporate directors.

The Corporate Governance 2014 Annual Report reflects four years of work with small-cap companies—those with a capitalization of $2 billion or less—to adopt the majority-vote standard. The standard requires directors to receive a majority of shareholder support to be elected to the board.

Statement Michelle Mussuto

CalSTRS Supports S&P Action to Bar Multi-Class Share Companies from Index

Anne Sheehan

WEST SACRAMENTO, Calif. (Aug. 4, 2017) – CalSTRS Director of Corporate Governance Anne Sheehan issued the following statement in response to S&P Dow Jones Indices decision this week to not include companies with multi-class shares in the S&P Composite 1500®.

“We are very pleased by S&P’s decision because it reflects the view of investors that dual and multi-class share structures eliminate a core corporate governance principle—one share, one vote.

News release Ricardo Duran

In Rebuke to Netflix Board, Shareholders Back Proxy Access, Annual Director Elections and Elimination of Supermajority Voting Requirements

WEST SACRAMENTO, Calif.—The California State Teachers’ Retirement System was among the Netflix investors who spoke out today following the entertainment company’s annual meeting, at which shareholders again backed multiple proposals to reform the company’s corporate governance practices.

Statement Michelle Mussuto

CalSTRS Upends Wells Fargo Stagecoach with Votes Against Long-Tenured Board Members

WEST SACRAMENTO, Calif. – CalSTRS voted its 11.6 million shares against long-tenured board members John D. Baker II, John S. Chen, Lloyd H. Dean, Enrique Hernandez, Jr., Donald M. James, Cynthia H. Milligan, Federico F. Peña, Stephen W. Sanger, and Susan G. Swenson. These board members failed in their duty to shareholders to identify the weaknesses in the company’s risk and oversight mechanisms.

Statement Ricardo Duran

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.

News release Ricardo Duran

CalSTRS Analysis of 2011 Say-on-Pay Proxy Voting Available Online
CalSTRS Corporate Governance offers a lessons learned analysis for the first year of mandatory say-on-pay for most U.S. Corporations

WEST SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) released, “Lessons Learned: The Inaugural Year of Say-on-Pay,” its analysis of shareholders’ ability to vote on executive compensation, known as say-on-pay, during the 2011 proxy season.

News release

CalSTRS to Oppose Occidental Petroleum Executive Compensation Advisory Vote
Letter to director critical of ‘wildly excessive pay’ in excess of peer group median.

 WEST SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) announced today it will vote against the advisory vote approving executive compensation and the election of all incumbent board members at Occidental Petroleum’s (NYSE: OXY) 2010 Annual Meeting in Los Angeles on May 7.

News release Michelle Mussuto

CalSTRS and Banc of California Collaboration Creates a More Diversified Board
Appointments of two women to previously all male board are a result of collaborative engagement

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today praised Banc of California’s announcement that it has added Mary Allis Curran and Dr. Bonnie Guiton Hill to its board of directors. CalSTRS worked together with investment partners Legion Partners Asset Management, LLC and Banc of California to identify the best board candidates.

News release Michelle Mussuto Megan White

Diverse Director DataSource Joins the Equilar Diversity Network
Database matches candidates and companies to help improve corporate board strength and diversity

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System and the California Public Employees’ Retirement System today announced the Diverse Director DataSource (3D) will now be available through the Equilar Diversity Network.

Letter Ricardo Duran

CalSTRS Letter to Bank of America Regarding Intent to Vote Against Bylaw Amendment

We are writing today to inform you of our intention to vote against the Board’s amendment to the Bank of America bylaws, which would provide for either an independent Chair or a Lead Independent Director.  We have stated many times in previous correspondence that CalSTRS fundamentally supports a leadership structure with an independent Chair.  We believe the roles of CEO and Chair of the Board, have inherent conflicts which require the two posts to be separate and independent. 

News release Michelle Mussuto

Leading Investors Launch Historic Initiative Focused on U.S. Institutional Investor Stewardship and Corporate Governance
Unveils Framework of Guiding Principles with Expectation of Long-Term Value Creation, Investor Protection

CalSTRS is one of the founders of the Investor Stewardship Group. The ISG is a collective of some of the largest U.S.-based institutional investors and global asset managers, along with several of their international counterparts. It was formed to develop a sustained initiative to establish a framework of basic standards of investment stewardship and corporate governance for U.S. institutional investor and boardroom conduct. The ISG is being led by the senior corporate governance practitioners at institutional investor and investment management firms.

The ISG brings all types of investors together to enable them to speak with one voice on these fundamental issues of corporate governance and investment stewardship.

News release Ricardo Duran

CalSTRS Green Bond Program Enters Its Seventh Year
CalSTRS Fixed Income is a leader in the green bond market, more than tripling its holdings over the past two years

WEST SACRAMENTO, Calif. – Seven years after initiating its green bonds program, the California State Teachers’ Retirement System is poised for continued portfolio growth and holdings expansion, as reflected in the 10th annual Green Initiatives Task Force Report released yesterday.

News release Gretchen Zeagler

CalSTRS Releases 8th Annual Green Initiative Task Force Report
Environmentally-focused strategies nearly triple green bond purchases

WEST SACRAMENTO, Calif. – California State Teachers’ Retirement System’s (CalSTRS) eighth annual Green Initiative Task Force 2014 Annual Report shows an almost 300 percent increase in green bond purchases within the Fixed Income portfolio. This year, the Teachers’ Retirement Board identified sustainable investing as a key, strategic priority, which is reflected in the report and other initiatives.