2017 Corporate Governance Report
Managing Risk and Enhancing Performance
Public pension and multiemployer funds continue to advocate for improved performance, best practices and increased shareholder value through corporate governance and proxy voting initiatives.
2017 saw coalitions of benefit plans, money managers and other shareholders push for corporate governance and policy changes on issues ranging from board diversity to executive pay practices to the opioid crisis. This report examines their efforts. Among them:
- Investors likely will see changes to executive compensation plans in 2018 because of the Tax Cuts and Jobs Act of 2017.
- For the first time, companies will now publicly report the ratio of CEO pay compared to that of the average worker in their proxy statements.
- Beginning in March, Segal Marco will vote against board directors where there is no gender diversity.
The U.S. Department of Labor considers a plan’s proxy votes to be plan assets. Fiduciaries should familiarize themselves with the proxy votes cast on their fund’s behalf.
Contact your Segal Marco Advisors consultant to learn more about how proxy voting can help ensure corporate boards’ actions align with the interests of your plan.