CalSTRS, Sacramento, targeted a dozen companies with which it will work closely to try to improve corporate governance practices and financial performance. The $116 billion California State Teachers' Retirement System selected the companies based on financial performance over one-, three- and five-year periods, also considering corporate governance concerns and institutional investor interest in the stocks. The companies, which have underperformed both broad market indexes and their peer groups over the periods, are: Big Lots, Crown Holdings, Goodyear Tire & Rubber, Interface, Libbey, Long's Drug Stores, Lucent Technologies, Parametric Technology, Qwest Communications International, Sirius Satellite Radio, Steelcase and Thomas & Betts. "As long-term owners, we have to be engaged with these companies as partners in rehabilitating the health of the operating revenues, margins and capital costs," Christopher J. Ailman, CIO, said in a statement. "Responsible corporate governance adds value to our entire portfolio. Even (a) five-basis-point improvement on our domestic equity portfolio translates into a more than $24 million value add — that's real money."