Corporate Governance
TIAA-CREF is a leading proponent of shareholder rights and ethics in corporate governance. We believe that shareholders have a duty to monitor and interact with companies on matters of sound governance, social responsibility and overall performance. By doing so, we encourage practices that can help companies remain competitive and financially viable over time, thereby maximizing their long-term investment potential.
Proxy Voting
As an equity investor in publicly traded companies, TIAA-CREF exercises its rights and fulfills its fiduciary responsibilities by diligently voting proxies. We use our votes to promote board and management accountability and encourage a reasonable approach to socially responsible behavior. Our diligence in proxy voting is widely known and respected.
For example, in a 2007 study sponsored by The Conference Board, TIAA-CREF ranked number one among 29 major mutual fund firms for voting most consistently to limit excesses in executive compensation.
Engagement
At TIAA-CREF, we believe that once companies have access to capital from the public markets, they are obligated to give priority to shareholder interests and seek to maximize long-term performance. We engage with companies on issues that may pose economic risks or impact long-term shareholder value, including governance practices, shareholder rights and social and environmental issues. In our view, engaging with companies in this way is more effective in changing their behavior than public confrontation or divestment of our shares.
Thought Leadership
TIAA-CREF actively participates in the public debate on a variety of corporate governance and social responsibility issues in the domestic and international markets. Our policies and advocacy are influential in the development of legislation and regulation, as well as corporate policies.
© 2009 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
