Global Proxy Votes

General Information

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.

Issue 2012-13 Total 2012-13 For 2012-13 Against 2013-14 Total 2013-14 For 2013-14 Against 2014-15 Total 2014-15 For 2014-15 Against 2015-16 Total 2015-16 For 2015-16 Against 2016-17 Total 2016-17 For 2016-17 Against
Directors 20,630 16% 84% 19,542 15% 85% 20,611 16% 84% 22,191 22% 78% 22,795 21% 79%
Auditor Ratification 2,155 70% 30% 2,399 72% 28% 2,365 70% 30% 2,826 75% 25% 2,919 76% 24%
Compensation Plans 2,395 78% 22% 3,141 72% 28% 3,251 73% 27% 3,664 71% 29% 3,507 72% 28%
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.

Summary of Meeting Votes by Region. In order of votes, ranging from 0 to approximately 4000: Africa, Middle East & North Africa, Oceania, Latin America & Caribbean, Asia (Excluding Japan), Japan, Europe, Canada & US

 

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.

Number of Proxies Voted by Region vrom 2012-2017. In order of proxies, ranging from 0 to approximately 4000: Middle East & North Africa, Oceania, Latin America & Caribbean, Asia (Excluding Japan), Japan, Europe, Canada & US