VRS Corporate Governance Task Force Releases Report

RICHMOND, Va., Feb. 21–The Corporate Governance Task Force, established by the Virginia Retirement System (VRS) board of trustees, submitted its final report and recommendations to the board. In its report, the task force recommends the following initiatives:

Develop formal proxy voting guidelines that would be used by investment account managers to vote proxies in the best interest of the fund.
Recommend an annual review by the VRS board of proxy voting practices.
Participate in an institutional-investor organization to provide a unified voice in seeking to influence corporations. In addition, joining an institutional investor organization would be an effective vehicle for communicating policy positions to regulatory agencies, and federal and state lawmakers.
Work with the Virginia Office of the Attorney General to review and evaluate potential securities litigation.
Enlist the services of a third-party monitoring service to look for potential litigation opportunities that arise from corporate wrongdoing.

"Although the task force found existing VRS practices and procedures related to corporate governance to be comprehensive, it recommends that the agency formalize some of its processes and facilitate the monitoring of governance-related activities by the board," Alfonso I. Samper, VRS board chairman, said.

W. Mark Crain, Ph.D., a member of the VRS board and an economics professor at George Mason University, chaired the task force, which included: Paul W. Timmreck, senior vice president of Virginia Commonwealth University; Steven A. Markel, an insurance executive; Norwood Jackson, an accountant and former state auditor; R. Ruffin King, IV, a lawyer and investment manager; and Owen B. Pickett, a lawyer and former Congressman.

Read the report 645kb

VRS is the 29th largest public or private pension fund in the U.S. and provides benefits to 107,000 retirees and 310,000 active members.

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