CalSTRS and Relational Investors Endorse Occidental Petroleum Governance Initiatives
WEST SACRAMENTO, CA – The California State Teachers’ Retirement System (“CalSTRS”) and Relational Investors LLC (“Relational”) endorse the decisive initiatives announced today by Occidental Petroleum Corporation (“the Company”) relating to CEO succession planning, executive compensation reform, and board composition.
These initiatives, together with the anticipated election to the board, later this year, of a Director proposed by CalSTRS and Relational, fully resolve the concerns expressed during the two institutions’ discussions with the Company over the past several months. Together, CalSTRS and Relational own 10.1 million Company shares representing 1.24 percent of the shares outstanding and valued at $851 million.
“These initiatives are an excellent example of how shareholders and a proactive board of directors can work together to solve complex governance issues,” said Anne Sheehan, Director of Corporate Governance at CalSTRS. In responding to the board’s succession planning initiative, Relational Co-founder, Ralph Whitworth, stated, “Occidental has generated extraordinary returns for shareholders over the last decade under Ray Irani’s visionary leadership and his partnership with Steve Chazen. We are glad that their combined and enormously successful stewardship will continue over the coming years as the succession process is completed.”
The California State Teachers’ Retirement System, with a portfolio valued at $132 billion, is the second largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 848,000 public school educators and their families from the state’s 1,400 school districts, county offices of education, and community college districts.
Relational Investors LLC is an employee-owned Registered Investment Adviser and asset management firm, which manages approximately $6 billion. The firm serves some of the largest pension funds and institutional investors in the world. Relational’s mission is to create long-term value for clients by applying its “relational” strategy. The firm invests in and strives to create excess performance in publicly traded, underperforming companies that it believes are undervalued in the marketplace.