Office of State Treasurer
Denise L. Nappier
the principal fiduciary for the state pension fund, Connecticut’s Treasurer is
required to act prudently and in the long-term economic interest of plan
participants. In addition to
prudence, Connecticut law directs the Treasurer to consider the social, economic
and environmental implications of particular investments on foreign policies and
the national interests of the United States.
the state pension fund invests in a company, it becomes a shareholder of that
company. Shareholders are obligated
to vote each year on certain significant issues that may affect the future
financial performance of the company. One
of the shareholders’ most important responsibilities is to elect the members
of the board of directors, the body of corporate governance ultimately
accountable for corporate performance. Shareholder
votes also may affect the economic interests of certain stakeholders of the
company including the employees and the community in which the company resides.
Shareholders are also asked to approve changes in compensation, mergers
or acquisitions, and how the company raises capital.
such as the State of Connecticut, refer to written policies to guide decisions
concerning companies in which the fund has an ownership interest.
Customarily, pension fund managers do not attend the annual meetings
where such corporate policies are voted on.
Instead, fund managers send in their ballots known as proxies.
The written policies that guide how decisions will be cast on the proxies
are referred to as proxy voting policies.
Treasurer views this proxy voting responsibility as one, which is of the utmost
importance to the Office. Proxy voting is a method that allows investors to hold
companies in which they invest accountable for the business decisions they make.
In the examination of every investment, the Connecticut law requires the
Treasurer to scrutinize these corporate decisions to determine whether they have
met the standards of good corporate citizenship as articulated in the law. The
Treasurer is also responsible for the consideration of the long-term, best
economic interests of the workers and retirees who rely on the fund for their
pension benefit upon retirement. For
this reason, the Treasurer’s proxy vote must be a rigorous economic analysis
to ensure that it meets standards of prudence and loyalty related to the
Treasurer’s fiduciary responsibilities.
the first time since 1995, the Connecticut Office of the Treasurer has
re-established itself as a responsible institutional investor.
A comprehensive series of proxy voting policies, developed and proposed
by Treasurer Nappier and endorsed by the state’s Investment Advisory Council,
are now in place to ensure that these critical responsibilities are performed
consistent with state law and the obligations of the State Treasurer.
These proxy voting policies are divided into two types of policies. The first policy applies to decisions made about companies that are headquartered in the United States. These are listed on this website as Proxy Voting Policies. The second sets of policies, Global Proxy Voting Policies, govern the votes of companies headquartered outside of the United States.
|Domestic Proxy Voting Policies - Adopted September 2011||Global Proxy Voting Policies|