Corporate Governance

Corporate governance is the relationship between all the stakeholders in a company including shareholders, directors and management.  It encompasses the framework of rules and practices by which a board of directors ensures accountability, fairness and transparency in the firm's relationship with all of its stakeholders.

LAFPP is a founding member of the Council of Institutional Investors (CII), a U.S. shareowner-rights organization and a not-for-profit association of public, labor and corporate pension funds.  CII works to educate members and the public about corporate governance and to advocate for strong governance standards on issues ranging from executive compensation to the election of corporate directors.

Within our roles as fiduciaries, LAFPP must invest System assets with a high degree of care, ensuring that our duty to LAFPP members comes first, before any other duty.  In keeping with this fiduciary duty, LAFPP takes corporate governance issues seriously and exercises a voice on behalf of its members in matters of corporate governance through the proxy voting process.  Proxy voting authorizes an agent to vote on behalf of shareholders on issues surrounding the management of a company at shareholders' meetings. Votes are always "for" or "against".  LAFPP has created an extensive framework for proxy voting as outlined in our Proxy Voting Guidelines (see link below) and has addressed the following corporate governance issues:

Proxy Voting Guidelines

Climate Change

Letters to the Securities and Exchange Commission (SEC)