Corporate Governance Overview
Corporate governance is a powerful force in American business and, as one of the
largest pension funds in the world, SWIB strives to protect its investments by
being proactive in this area.
SWIB's Corporate Governance Program was implemented in 1986 to protect SWIB's
long-term investment earnings by exercising its rights as a shareholder. As a
way to carry out SWIB's fiduciary obligation to the trust fund beneficiaries, we
work to keep companies and their directors focused on shareholder value by
communicating concerns to company management and corporate board members.
In most cases, governance activities are directly associated with SWIB assets. However, when warranted and to promote and enhance long-term shareholder value, SWIB may become involved in other governance activities that apply to a greater public issue and more broadly impact the integrity of public corporations.
Key Program Elements: Each year, SWIB identifies key issues based on
staff’s recommendations and national governance trends. Much of our
activities are focused on the following areas:
Corporate Governance Organizations: To remain abreast of industry
activities and governance issues, SWIB participates in various governance
organizations, attends training and conferences, and communicates with other
public pension funds. SWIB is an active member of the
Council of Institutional Investors (CII), a
not-for-profit, U.S. shareowner-rights organization.
Shareholder Resolutions and Other Activities: SWIB believes that
direct discussion with companies about governance concerns is an important
component in improving governance. SWIB may also become involved in supporting or preparing
shareholder resolutions or may participate in other public activities if the
probability of improving shareholder value from such activities is great.