Concluding Remarks

General Information

For fiscal year 2017-18, CalSTRS will continue to vote our proxies in accordance with our Corporate Governance Principles and in a manner that aligns with the interests of our beneficiaries, California public teachers.

Overall, we believe the market has shown improved governances as many large companies have adopted governance best practices, such as proxy access, and are engaging shareholders on various issues, including executive compensation, board composition, and ESG issues during the proxy off-season.

However, there are companies that continue to have excessive executive compensation and poor governance practices that our diminish shareholder rights. CalSTRS will continue to use our proxy votes to support certain corporate directors, corporate actions and shareholder proposals at the companies to improve their governance and enhance their long-term shareholder value.