Courtesy of Proxy Analytics’ alerts, State Street’s newly released annual CEO letter identifies these 2023 proxy voting and engagement priorities: 1) effective board oversight, 2) climate risk management, 3) human capital management, and 4) DE&I, and notes a new policy beginning in 2024 applicable to S&P 500 companies that will look to disclosure of internal policies on director time commitments in lieu of numerical director overboarding limits (see report below).
The letter also reiterates (see “State Street”) State Street’s previously expressed preference for votes against directors to promote accountability in lieu of supporting shareholder proposals, which it describes as “often too prescriptive.”
The companion piece: “Guidance on Effective Board Oversight” outlines the factors State Street considers in evaluating board oversight effectiveness. And its concurrently posted “The Board’s Oversight of Employee Voice” discusses the importance of employee engagement as a component of the board’s oversight of human capital and provides guidance to boards on how to oversee and remain informed about employees’ perspectives and experiences with reference to relevant benchmarking data.