The California State Teachers Retirement System has called on 300 of its largest portfolio companies to develop more responsible executive pay policies in light of the economic crisis, and to allow shareholders advisory votes on those policies.
CalSTRS, the second largest public pension fund in the United States with $111 billion in assets, said its goal is to reward long-term thinking on compensation and improve pay-for-performance practices while deterring excessive risk taking. “CalSTRS has a long history of promoting responsible compensation policies that link pay to performance and align shareholder and management interests,” says Anne Sheehan, the fund’s director of corporate governance.
