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. The goal of the
corporate governance program is to protect and enhance investment returns of the
assets SWIB manages by identifying strategies likely to produce the best
long-term financial results.
Program Philosophy
As a long-term investor in equity securities, Trustees are committed to
governance activities that enhance the returns to the funds under management and
improve long-term performance.
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.
To help achieve its goals, SWIB works with other pension funds as a member of
the Council of Institutional Investors, (CII), a US shareowner-rights organization. It is a
not-for-profit association of 130 public, labor, and corporate pension funds. Council members work together on corporate governance
measures to protect plan assets and increase return on their investments.
OF INTEREST
CII has delivered a
corporate governance reform advocacy letter to members of Congress,
as well as members of key House and
Senate committees dealing with financial markets. The letter emphasizes
the need for vigorous oversight, and investor protection, as well as better tools
for shareowners to hold mangers and Trusteess accountable.