Proxy Voting
A Guide to Proxy Voting
How does a pension fund work?
- Pension funds aim to grow their assets over time to meet their obligations to retirees by strategically investing the contributions received from employees and/or employers. They invest across a diversified portfolio of assets with the primary goal of generating returns that will cover future pension payments.
- These investments include funds/pools of money that may hold publicly traded companies. These publicly traded companies have annual meetings that help direct the company in the coming year. Since there are so many public companies, the Wyoming Retirement System (WRS) has hired a contractor to help vote and track those votes of these publicly traded companies; called “Proxy Voting.”
What is Proxy Voting?
- Publicly traded companies hold shareholder meetings at which key issues are presented to a shareholder vote. Proxy voting enables the company’s shareholders to submit their votes on each matter without attending the meeting in person.
What issues are voted on?
- Votes may cover a variety of issues. Typically, they include items such as electing the board of directors and approving the compensation of company executives. Votes may also include shareholder proposals requesting companies to report on certain business practices or potential areas of risk.
*WRS asks that all proxy votes are cast in the best financial interest of the pension fund; meaning, what decision/vote will give the greatest return on investment (ROI) for the pension fund and its members.
