CalSTRS-Relational Statement Regarding the Timken Company Decision
WEST SACRAMENTO, CA – The California State Teachers’ Retirement System’s (CalSTRS) Director of Corporate Governance Anne Sheehan issued the following statement today regarding the Timken Company decision to establish a board strategy committee to evaluate the separation of the steel business:
“CalSTRS and Relational Investors acknowledge the announcement from Timken and are hopeful the independent committee will adhere to the clear message that shareholders sent at the annual meeting regarding the spin-off of the steel business to unlock shareholder value. More than two-thirds of unaffiliated shareholders voted in favor of the CalSTRS proposal at the May annual meeting to direct the board to split the company into separate publicly-traded steel and bearings businesses.
“CalSTRS and Relational Investors remain steadfast in our view that splitting the company is in the long-term best interest of stakeholders and we look forward to the board taking final action in this regard.”
About Relational Investors LLC
Relational Investors LLC, founded in 1996, is a privately held, multi-billion dollar asset management firm and registered investment adviser. Relational invests in publicly traded companies that it believes are undervalued in the marketplace. The firm seeks to engage the management, board of directors, and shareholders of its portfolio companies in a productive dialogue designed to build a consensus for positive change to improve shareholder value.
Relational Investors Contact:
The California State Teachers’ Retirement System, with a portfolio valued at $167.2 billion as of April 30, 2013, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. For 100 years, CalSTRS has served California’s public school educators and their families, who today number 862,000 from the state’s 1,600 school districts, county offices of education and community college districts.