CalSTRS Supports Key Provisions in Financial Reform Bill
Corporate governance provisions strengthen shareholder’s rights.
WEST SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today announced its support of federal financial reform legislation introduced by Sen. Christopher Dodd, D-Connecticut.
The bill cleared its first hurdle earlier this week by moving out of the Senate Banking Committee, chaired by Sen. Dodd. The proposed legislation contains corporate governance measures that give large, long-term shareholders proxy access, require a majority vote for directors in uncontested elections, and a say on pay.
The bill also provides strong consumer protections and oversight authority aimed at preventing a repeat of the crisis that paralyzed financial markets and triggered the deepest recession in nearly a century.
“Shareholders are the last line of defense and need the tools to do the job to hold corporate management accountable for their actions. This bill would give shareholders the ability to change who’s in the boardroom to assure that long-term value is preserved,” said Anne Sheehan, corporate governance director at CalSTRS.
The California State Teachers’ Retirement System, with a portfolio valued at $132.5 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.