In Part 2 of this series, we discuss the Investor Stewardship Group (ISG)’s Corporate Governance Principles with one of the founding members: the Florida State Board of Administration (SBA).
Tracy Stewart, Senior Corporate Governance Analyst for the Florida SBA, joins host TK Kerstetter to explain why the major pension fund got involved with the ISG. Once the Corporate Governance Principles go into effect on January 1, 2018, what does this influential group of investors expect from corporate boards?
“Some of this is ‘no brainer’ stuff—and the good companies out there are already doing this,” explained Stewart. “But there are a lot of companies that aren’t quite up to snuff. I think [the ISG Corporate Governance Principles] will snowball into pressure on them.”
Stewart explains how the roster of founding members—including BlackRock, Vanguard, State Street, CalSTRS, Trian Partners, and more—originally came together to agree on a baseline of corporate governance principles, which the group can now present as a united front.