The Role of Public Pension Funds in Governance

Public pension funds have great influence over corporate governance because of the size and nature of their portfolios: They manage more than $3 trillion in assets and often invest in a large number of companies. Besides largely unobservable private negotiations, voting at annual or special shareholder meetings is one of the most direct ways for investors to affect corporate decisions. CalPERS, the largest public pension fund in the U.S., states that proxy voting is “the primary way we can influence a company’s operations and corporate governance.” This view is shared by a number of other high profile-public pension … Read more