As a practice, CalPERS does not abstain from voting unless market mechanics require it to execute the vote. For example, in certain markets you can only vote for a certain number of directors and you MUST abstain from the others or the vote will not be accepted.
CalPERS engages over 17% of our 9800 security global portfolio. Although the percentage of companies we've engaged and voted against management is unknown (not tracked) it is reasonable to conclude that it is significantly higher than in companies where we support management.
Actions taken by staff when voting against management include:
- Written correspondence citing CalPERS' concern (before and after vote)
- Public disclosure of proxy vote on CalPERS website
- Follow up conversations with company (e.g. in-person or conference call)
- Year over year monitoring of company progress.