CalSTRS Ongoing Engagement with Facebook Focuses on Risk Mitigation
WEST SACRAMENTO, Calif. (April 5, 2018) – Today, Aeisha Mastagni, Portfolio Manager in the CalSTRS Corporate Governance Unit, made the following statement regarding CalSTRS’ ongoing engagement with Facebook, Inc.:
“CalSTRS has owned shares in Facebook, Inc. since its initial public offering in 2012, as well as through privately held assets prior to the IPO. While CalSTRS applauds the growth in Facebook’s market capitalization to build value for its shareholders, it is also part of our due diligence to focus on what actions are being taken both now and in the future to mitigate risks that could potentially impact shareholder value.
“As an active shareowner, CalSTRS focuses on engaging with our portfolio companies in order to address their risk mitigation strategies. We are currently establishing contact with Facebook to learn more about what controls are in place today to protect users’ data into the future. Additionally, we would like to understand what additional steps Facebook is taking to protect this data in order to regain the trust of their users, the public, and their shareholders.
“We are establishing contact with Facebook to learn more about what controls are in place today to protect users’ data.”
Corporate Governance Portfolio Manager
“Given the nature of this ongoing engagement, CalSTRS looks forward to having a substantive dialogue with Facebook’s leadership on this issue, as well as other governance matters, from our perspective as a large shareholder.”
As of December 31, 2017, CalSTRS’ holdings in Facebook, Inc. were valued at more than $931.2 million.
The California State Teachers’ Retirement System, with a portfolio valued at $224.4 billion as of February 28, 2018, is the largest educator-only pension fund in the world. CalSTRS serves California’s more than 933,000 public school educators and their families, from the state’s 1,700 school districts, county offices of education and community college districts. A hybrid retirement system, CalSTRS administers a combined traditional defined benefit, cash balance and voluntary defined contribution plan. CalSTRS also provides disability and survivor benefits. CalSTRS members retire on average after more than 25 years of service, with a median retirement age of 62.9, and a monthly pension of approximately $4,475, which is not eligible for Social Security participation. For more data, download the CalSTRS Fast Facts 2017 brochure.
See how CalSTRS demonstrates its strong commitment to long-term corporate sustainability principles in its annual Global Reporting Initiative sustainability report: Global Stewardship at Work.