CalPERS may withhold votes from director nominees who show failed oversight and/or a lack of commitment surrounding labor issues such as diversity, equity and inclusion, and also announced it is actively engaging with 16 companies regarding their reported rollback of DEI initiatives.
The $533.4 billion California Public Employees’ Retirement System, Sacramento, announced the new policy in a global public equity proxy-voting and corporate engagement update included with materials for its upcoming March 17 investment committee meeting.
The new 2025 update to CalPERS’ proxy-voting guidelines states, “We may withhold vote from director nominees that have demonstrated a lack of commitment and/or failed oversight surrounding (human capital management) and other labor issues in-line with the CalPERS Labor Principles.”
The new guidelines reflect CalPERS’ “long history of proxy voting and company engagement surrounding HCM issues,” according to the meeting materials. CalPERS’ labor principles include the “elimination of discrimination in respect of employment and occupation.”
One facet of that elimination is seeking “to improve diversity, equity and inclusion in portfolio investments to address recruitment, retention and compensation,” according to the principles posted on CalPERS’ website.
The meeting materials also say CalPERS is now actively engaging with 16 unnamed companies regarding their reported rollback of DEI initiatives. The pension fund said it will monitor company activity during the 2025 proxy season and “hold directors accountable for removal of best practice disclosures/policies where appropriate.”
A CalPERS spokesperson could not be immediately reached for further information.
