Statement on alternate board members for ExxonMobil
WEST SACRAMENTO, Calif. (December 7, 2020) – CalSTRS issued the following statement today regarding its intention to support an alternate slate of board members for ExxonMobil being put forth by Engine No. 1:
As the world’s largest educator-only retirement fund, CalSTRS’ investment and engagement decisions are rooted in our mission to deliver a secure pension to California’s public educators. CalSTRS intends to support Engine No. 1’s alternate director slate for ExxonMobil to equip the board with the relevant skills and experience to strengthen long-term performance, resiliency and strategic positioning.
Corporate boards have a responsibility to represent shareholders and act in their best interest. The alternate slate of directors has deep expertise in energy and other industries undergoing transformation that will address ExxonMobil’s financial underperformance, align incentives with shareholder value creation and better prepare for the global energy transition.
CalSTRS has a track record of actively engaging companies and voting proxies to influence meaningful change that mitigates risk and contributes to the sustainable value of our investments. We believe it is time for change at ExxonMobil and intend to use our proxy votes to support the alternate slate, if nominated, at the next annual shareholders meeting. We look forward to ongoing dialogue with the company and other investors over the coming months.
CalSTRS provides a secure retirement to more than 975,000 members whose CalSTRS-covered service is not eligible for Social Security participation. Members retire on average after more than 24 years in the classroom with a monthly benefit of approximately $4,547. Established in 1913, CalSTRS is the largest educator-only pension fund in the world with approximately $254.7 billion in assets under management as of October 31, 2020. CalSTRS demonstrates its strong commitment to long-term corporate sustainability principles in its annual Global Reporting Initiative Sustainability Report. For more information, visit CalSTRS.com.