CalSTRS Praises Congressional Action Increasing Board Accountability
Representative Waters’ amendment strengthens SEC authority.
WEST SACRAMENTO, CA– The California State Teachers’ Retirement System (CalSTRS) today praised congressional action led by Representative Maxine Waters (D-CA) aimed at holding corporate boards more accountable. Rep. Waters’ amendment will empower the Securities and Exchange Commission to make it easier for shareholders to nominate corporate directors.
The House Financial Services Committee on Wednesday passed the Investor Protection Act of 2009 (HR 3817), seen as critical to provide CalSTRS and other large, long-term investors access to the proxy in order to nominate board candidates.
“Strengthening the SEC’s authority on rules over proxy access is an important step toward regulatory safeguards that will help prevent a repeat of the financial crisis,” said Jack Ehnes, CalSTRS Chief Executive Officer. “The continued support of Chairman Barney Frank for corporate governance reform, and the amendment by Representatives Waters and Gary Peters (D-MI), protects the interests of shareholders and helps manage risk at the corporate level.”
The California State Teachers’ Retirement System, with a portfolio valued at $130.3 billion, is the second largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 833,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts and pays benefits of more than $8 billion annually.