Corporate Governance

Corporate Governance

Shakeup at CalPERS board: Cop unseats pension fund’s president

Sacramento Bee
CalPERS is considered underfunded because its assets are worth about 71 percent of what it owes in promised benefits to retirees and public employees. Some cities, including Corona, have complained that rising pension costs are inhibiting their ability to fund other services.

ACCF Applauds SEC Call for Roundtable on the Proxy Process

“The SEC’s rules governing the proxy process are at the center of investor participation in the corporate governance of public companies. The decision to hold a roundtable to gather stakeholder input is an strong signal that the commission is serious about ensuring the concerns of investors are appropriately represented,” said Tim Doyle, General Counsel and Vice President of Policy at the American Council for Capital Formation.

SEC Decision Begins Process of Reforming Corporate Governance

Real Clear Policy
The Securities and Exchange Commission (SEC) should be commended for its decision last week to rescind two previously issued guidance letters that had allowed third-party firms known as “proxy advisors” to wield undue influence over the shareholder proposal process.

Corporate Lobbyists Notch Win in SEC Walk-Back on Proxy Advisers

Bloomberg Law
The withdrawal of the SEC letters could help the bill’s supporters achieve their goals without Congress. “It’s a great first step toward genuine reform of the way these proxy advisory firms have exerted their influence over corporate governance matters,” said Tim Doyle, vice president and general counsel of American Council for Capital Formation, which supports the bill.

Rating agencies using green criteria suffer from ‘inherent biases’

The Financial Times
Agencies that judge companies according to their environmental, social and governance metrics suffer from wildly diverging standards and “inherent biases”, according to a report by the American Council for Capital Formation.

Think tank takes ESG rating agencies to task

Pensions & Investments
The American Council for Capital Formation is questioning the ratings process used for ESG investments.

Bloomberg TV: Banks Discusses Role of Proxy Advisory Firms

ACCF Executive Vice President George David Banks recently sat down with @markets to discuss proxy advisory firms and the disconnect between big money managers...

Leading National Associations Announce Launch Of First-Of-Its-Kind Investor Coalition

Former White House senior official George David Banks to serve as Executive Director

Time to Regulate Proxy Advisory Firms

RealClear Policy
In the world of corporate governance, proxy advisory firms like ISS (Institutional Shareholder Services) and Glass Lewis have become increasingly important. Their role advising...

ACCF Joins SEC Commissioner for Capitol Hill Panel on ESG Investments

On May 9, ACCF Vice President of Policy and General Counsel Timothy Doyle participated on a Capitol Hill panel sponsored by the Savings and Retirement Foundation: “The Impact of ESG Investments on Retirement Wealth.”

As Investment Funds Politicize, Department of Labor Stops What’s Anti-Investor

Real Clear Markets
While the market from ESG related information and investment strategies has grown in the last few years, investing via these factors, without a show of “substantial increase in economic value of the company,” should be a decision that investors make after careful consideration of the effect on their investment.

BlackRock mustn’t mimic underperforming NYC pension funds

Crain's New York Business
Earlier this year, Blackrock CEO Larry Fink released his annual letter to CEOs, in which he called for a greater focus on "societal impacts"...

New York’s Pensions Should Focus On Financial Returns — Not Politics

Published in Investors' Business Daily

The recent push by New York City Mayor Bill de Blasio and Comptroller Scott Stringer to divest the city's pensions from fossil fuels is playing politics with retiree savings at a time when they can least afford it.

Stocks Weren’t Made for Social Climbing

Profits are the proper gauge of a company’s value to consumers—and to society.