Thirty Institutional Investors Demand “Say on Pay”

February 3rd, 2010
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Joining a longer list of signees, the California Public Employees’ Retirement System (CalPERS) recently added its support to a letter urging a number of financial companies to adopt the “Say on Pay” policy, which would enact a “shareholder advisory vote on executive compensation.” According to a CalPERS press release, CalPERS believes that the letter, signed by nearly thirty institutional investors, including Trilium Asset Management, TIAA-CREF Investment Management, Walden Asset Management, and Pax World Management, will “significantly advance sound governance goals of improved accountability to investors and the creation of long-term share value.”

The open letter, addressed to seventeen financial companies (JPMorgan Chase, Morgan Stanley, Bank of America, Citigroup, Wells Fargo, U.S. Bancorp, Waddell & Reed, Northern Trust, BB&T, Capital One Financial, American Express, PNC Financial Services, SunTrust, Fifth Third Bancorp, Comercia, KeyCorp, and Regions Financial), was coordinated by Walden Asset Management and the State of Connecticut Treasurer’s Office. Asserting that enacting a shareholder vote is “a timely and needed corporate governance reform” and “a reasonable and modest step compared to other remedies under consideration to address executive compensation in the industry,” the letter ask the financial services companies in question to follow the lead of other companies, including Goldman Sachs, State Street and Bank of New York Mellon, who have already voluntarily adopted the practice.

CalPERS and the other signees conclude in the letter that “the opportunity for investors to have an annual advisory vote, coupled with investor engagement with management or boards, is an important communication vehicle for investors and companies alike.” More info on shareholder activists can be found In HedgeTracker's Shareholder Activist Directory.
For Detailed Investor Profiles on these Investors, click below:
CalPERS
Pax World Management Corporation
TIAA-CREF Investment Management
Trillium Asset Management Corporation
Related People: Cheryl I. Smith; Christopher Brown; Jack Corbet*; Joan L. Bavaria*; Joseph Keefe; Julie Gorte; Luther Tyson*; Matthew Patsky; Roger W. Ferguson, Jr; Scott Evans
Related Entities: College Retirement Equities Fund (CREF); Pax World Funds ; Pax World Global Green Fund; Pax World International Fund; Pax World Small Cap Fund; Teachers Insurance and Annuity Association (TIAA); TIAA-CREF Asset Management; TIAA-CREF Investment Management LLC; California Public Employees' Retirement System; CalPERS Equities; CalPERS Investments; Green Century Balanced mutual fund; Pax World Growth Fund; Teachers Advisors Inc; Wainwright Bank & Trust Company
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles


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