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In order to maximize investment returns for its beneficiaries, the Washington State Investment Board believes it is important to look not only at the way a
company performs, but also the manner in which its directors carry out their corporate duties and responsibilities.
There is growing evidence that supports the theory that investing in companies with sound corporate governance programs and practices makes good economic sense and that
good corporate governance fosters long-term profitability.
As one of the country's largest institutional investors, the WSIB uses the proxy voting ballot to influence greater board transparency, integrity and accountability. |
 Proxy Voting Report: |
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| In 2006, the WSIB: |
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Voted 4,002 proxies.
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Cast votes on 29,800 individual proxy proposals dealing primarily with election of directors, ratification of auditor, compensation plans,
and shareholder proposals.
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Withheld votes from approximately 4,547 of the 19,449 director votes, which represents 23% of the total votes on this issue. The primary reasons
for withholding its vote from incumbent directors was lack of independence on the board and egregious compensation packages that suggest the board was not always
fulfilling its fiduciary duties.
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Voted against 346 of the 1,729 proposed executive compensation packages last year, or approximately 20% of the time. The WSIB voted against
more than 663 compensation committee members for paying excessive compensation. |
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For the 2007 proxy voting season, the WSIB will continue to carefully scrutinize the executive compensation practices of the companies in which it is
invested. There will be more than twice as many ballot proposals this year seeking to link pay-to-performance for corporate executives.
Another important corporate governance issue for 2007 will be the election of directors by majority vote. The WSIB made majority voting one of its
top priorities in 2006 and voted in favor of 111 proposals to require a majority vote standard. |
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