RI Treasurer Magaziner Commends Department of Labor Action on Shareholder Rights

Magaziner Commends U.S. Department of Labor Action on Shareholder Rights
Under Treasurer Magaziner’s Leadership, Rhode Island has launched an aggressive
shareholder advocacy program, with a goal of strengthening the pension fund.

PROVIDENCE, R.I. – The U.S. Department of Labor last week issued Interpretive Bulletin
2016-1 which reinforces the validity and importance of investors’ engagement with companies
in their portfolio.
«My office is actively engaging with companies in our portfolio to reign in excessive
executive pay, promote transparency of political spending, strengthen diversity
in the board room and push back against the student loan crisis», said Rhode Island
General Treasurer Seth Magaziner. «It is gratifying to know that the Department
of Labor is confirming the validity and importance of this type of shareholder action.»
Shareholder engagement is necessary when corporate executives take actions that
may be detrimental to shareholders such as the Rhode Island pension system. Over
the past year, Treasurer Magaziner has taken a number of actions designed to protect
the interests of pension system members, including voting «no» on over 70 executive
compensation packages and more than 200 Board of Director candidates.
Under Treasurer Magaziner’s direction, Rhode Island has also filed and co-filed
shareholder proposals at large energy companies including Exxon Mobil and Chevron,
pushing them to be more transparent in their political and lobbying spending. Rhode
Island is the lead filer on a shareholder proposal at student loan giant Navient
Corporation, requesting a comprehensive review of the company’s ability to adequately
serve customers in, or at risk of, default.
The Department of Labor Bulletin emphasized that «proxies should be voted» and that
shareholder engagement on issues including, but not limited to, corporate governance,
climate change and sustainability, and workforce practices are «increasingly being
recognized as important to long-term shareholder value.»