CalSTRS Statement on Procter & Gamble Co. Board of Directors Vote
WEST SACRAMENTO, Calif. – CalSTRS Chief Investment Officer Christopher J. Ailman made the following statement regarding the strong shareholder support Nelson Peltz received at today’s vote for a position on the board of directors at Procter & Gamble.
“CalSTRS believes that win or lose the vote today at Procter & Gamble sends a strong message to the board, management and the CEO— shareholders want change! Nearly 50 percent of shareholders—including large traditional passive asset managers—made it clear that they are looking for the company to change direction. As long-term shareholders—passive investors, but definitely active owners—CalSTRS supported Mr. Peltz’s board candidacy. As an active shareholder he would be a constructive voice and push for the change that’s needed for Procter & Gamble to start performing the way we know is possible.
“CalSTRS will own Procter & Gamble long after the current management has moved on or retired. We will continue to vote our shares to ensure that individuals—like Nelson Peltz—who are a valuable asset to a board, get the opportunity to represent us and other likeminded long-term shareholders.”
The California State Teachers’ Retirement System, with a portfolio valued at $213.7 billion as of August 31, 2017, 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. CalSTRS serves California’s more than 914,000 public school educators and their families from the state’s 1,700 school districts, county offices of education and community college districts.