NYC Comptroller Stringer, NYC Pension Funds Announce Board Diversity Wins At Four Companies

March 28, 2014

NEW YORK, NY – New York City Comptroller Scott M. Stringer announced today that Jarden Corporation and Freeport-McMoran Copper & Gold, Inc. recently named women to their boards of directors in response to shareowner proposals submitted by the New York City Pension Funds. Jarden also adopted a policy on board diversity, as did CF Industries, at which the Pension Funds’ board diversity proposal received a majority vote in 2013. Finally, Microchip Technology Incorporated, which named its first female director last fall, agreed to modify its proxy statement to reflect the board will consider ethnicity and gender, among other characteristics of diversity, in identifying and evaluating director nominees.

“The issue of diversity goes to the heart of a corporation’s commitment to long-term sustainable growth,” Stringer said. “These companies deserve praise for taking steps to diversify their boards. Corporate boards deal with a complex set of issues-it only makes sense to have a diverse set of individuals to confront the challenges of the modern business world.”

The Comptroller’s Office withdrew the Pension Funds’ proposal at Jarden in early March after the company appointed a woman to its board and adopted the board diversity policy requested in the proposal. Previously, the company did not have any women on its board. The resolution, which was filed this past winter with Mercy Investment Services and co-sponsored by the Connecticut Retirement Plans and Trust Funds, asked the company to:

  1. Include women and minority candidates in the pool from which Board nominees are chosen;
  2. Expand director searches to include nominees from both non-executive corporate positions and non-traditional environments such as government, academia, and non-profit organizations;
  3. Review periodically the composition of the Board to ensure it reflects the knowledge, experience, skills, and diversity required to fulfill its duties; and
  4. Report to shareholders, at reasonable expense and omitting proprietary information, its efforts to encourage diversified representation on the Board.

In 2013, the NYC Pension Funds’ proposal on board diversity at Freeport-McMoran received 28.9% of shareowner support. In response, the company appointed two women to its board of directors in December 2013. Additionally, the Pension Funds’ shareowner proposal at CF Industries received 50.7% of the vote, the highest-ever for this type of proposal. The Comptroller’s Office resubmitted the proposal for CF Industries 2014 annual meeting, but withdrew it in January after the company adopted a policy on board diversity.

Comptroller Stringer serves as the investment advisor to, and custodian and a trustee of, the New York City Pension Funds. The New York City Pension Funds are composed of the New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and the Board of Education Retirement System.

As of March 25th, the New York City Pension Funds held 776,731 shares of Jarden Corporation with a market value of $46.2 million, 2,969,574 shares of Freeport-McMoran Copper and Gold, Inc. worth $93.8 million, 152,576 shares of CF Industries worth $38.5 million, and 458,111 shares of Microchip Technology worth $21.8 million.

“We must continually strive to ensure Boards are inclusive, yielding superior performance and shareholder value. Along with Comptroller Stringer I hail the decisions by these corporations to add women to their boards and adopt diversity policies,” said New York City Public Advocate Letitia James.

Comptroller Stringer serves as the investment advisor to, and custodian and a trustee of, the New York City Pension Funds. The New York City Pension Funds are composed of the New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and the Board of Education Retirement System.

In addition to Comptroller Stringer, the New York City Pension Funds’ trustees are:

New York City Employees’ Retirement System: Mayor Bill de Blasio’s Representative, Carolyn Wolpert (Chair); New York City Public Advocate Letitia James; Borough Presidents: Gale Brewer (Manhattan), Melinda Katz (Queens), Eric Adams (Brooklyn), James Oddo (Staten Island), and Ruben Diaz, Jr. (Bronx); Lillian Roberts, Executive Director, District Council 37, AFSCME; John Samuelsen, President Transport Workers Union Local 100; Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System: Mayor Bill de Blasio’s Appointee, Carolyn Wolpert; Deputy Chancellor Kathleen Grimm, New York City Department of Education; and Sandra March, Melvyn Aaronson (Chair) and Mona Romain, all of the United Federation of Teachers.

New York City Police Pension Fund: Mayor Bill de Blasio’s Representative, Carolyn Wolpert; New York City Finance Commissioner Beth Goldman; New York City Police Commissioner William Bratton (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Louis Turco, Lieutenants Benevolent Association; and, Roy T. Richter, Captains Endowment Association.

New York City Fire Department Pension Fund: Mayor Bill de Blasio’s Representative, Carolyn Wolpert; New York City Fire Commissioner Salvatore Cassano (Chair); New York City Finance Commissioner Beth Goldman; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; John Farina, Captains’ Rep.; James Lemonda, Chiefs’ Rep., and James J. McGowan, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Sean O’Connor, Marine Engineers Association.

Board of Education Retirement System: Schools Chancellor Carmen Fariña; Mayoral: Milady Baez, Ezre T. Cleveland, Norm Fruchter, Vanessa Leung, Lori Podvesker, Robert Reffkin, Miguelina Zorilla-Aristy; Laura Zingmond (Manhattan BP), Fred Baptiste (Brooklyn BP), Debra Dillingham (Queens BP), Robert Powell (Bronx BP) and Kamillah Payne-Hanks (Staten Island BP); and employee members Joseph D’Amico of the IUOE Local 891 and Milagros Rodriguez of District Council 37, Local 372.

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