Global Proxy Votes
In 2016-17, staff voted on 53,294 proposals at 4,926 meetings held by companies in our non-domestic equity portfolio. Compared to 2015-16, the number of proposals and meetings was 2.7 percent higher and 0.1 percent lower, respectively.
The following table shows our votes for major issues on the global proxies for the past five fiscal years.
The aggregated “For” and “Against” votes for these major issues have remained fairly consistent over the past five fiscal years.
In 2016-17, CalSTRS continued to have a very low support of 21 percent for the directors on the public company boards in the foreign markets, which is primarily due to a lack of board independence, as specified in our Corporate Governance Principles. This is in contrast to our 71 percent support level for the directors on the public company boards in our domestic markets.
In 2016-17, we also supported only 13 percent of the shareholder proposals on the global proxies compared to the 70 percent support on the domestic proxies.
The significant difference in the support level can be attributed to the overly prescriptive or mandatory, rather than advisory, provisions associated with the shareholder proposals on the global proxies.
|Advisory Vote on Exec. Comp./Comp. Policy||1,104||65%||35%||1,666||79%||21%||1,607||81%||19%||1,692||76%||24%||2,193||78%||22%|
|Mergers & Acquisitions||401||89%||11%||296||95%||5%||316||97%||3%||346||93%||7%||303||96%||4%|
The following chart shows the number of meeting votes per region.Click for larger view
The following graph depicts the number of proxies voted by region over the past five fiscal years.
As shown in the chart, the number of global votes has been fairly consistent over the past four years. There was a significant increase from 2012-13 to 2013-14, which was due to our hiring of new emerging markets, particularly in the Europe and Asia ex-Japan regions.Click for larger view