Looking to the 2019 proxy season, based on new corporate governance initiatives discussed by its Investment Committee in November (Agenda Items 11 & 12 here), in addition to ongoing initiatives, CalSTRS reportedly will be targeting companies planning to hold virtual-only annual meetings, and those 40 - 50 portfolio companies with auditor tenures of 75 years or more.
CalSTRS plans to formalize its position that shareholders should always have the opportunity to attend the annual shareholders meeting in person, regardless of how closely a virtual meeting experience may simulate the in-person experience. And companies with lengthy auditor tenures that don't change their practices following CalSTRS' engagement on this issue may face a future "no" vote on the reelection of their directors.
A new investment principle on human capital management that will clarify CalSTRS' expectations of companies to cultivate a positive workforce culture is also planned. Reportedly characterizing it as "a work in progress," CalSTRS Corporate Governance Unit portfolio manager Aeisha Mastagni implied that human capital metrics may vary by company, but "that CalSTRS wants to look at company training, worker safety issues, and how management assures that employees are engaged."