As a shareholder, the SBI is entitled to participate in annual corporate meetings through direct attendance or by casting votes by proxy. In 1982, the SBI established the Proxy Committee to carry out the SBI's proxy voting responsibilities. Many of these proxy votes are on proposals concerning subjects such as director elections, audits, shareholder rights, executive compensation, and more. In effect, as a shareholder the SBI can participate in shaping corporate policies and practices.
In 2024, the SBI continued its history of active participation by casting its votes by proxy in annual and special corporate meetings. SBI Staff, in collaboration with the Proxy Committee, carried out the SBI's voting responsibilities at more than 2,000 meetings. The total number of items the SBI voted surpassed 20,000 for the third straight year.
The Proxy Committee is composed of a representative selected by each member of the Board and is chaired by the designee of the Governor. The Board re-authorizes the Proxy Committee every two years. The current membership is:
- Jake Smith - Governor’s designee
- Ramona Advani - State Auditor’s designee
- Justin Erickson - Secretary of State’s designee
- Dana Mitchell - Attorney General’s designee
The Committee has formulated guidelines by which it votes on a wide range of corporate governance, social responsibility and environmental issues. Each year the Proxy Committee reviews existing guidelines and determines which issues it will review on a case-by-case basis. In accordance with the Proxy Voting Guidelines (approved by the Board) and Precedents established by the Committee, SBI Staff, along with the Proxy Committee vote the proxies of all U.S. companies for which the SBI is entitled to vote. The Proxy Voting Guidelines are shared with the SBI's external investment managers to guide their voting decisions for non-U.S. companies.
The SBI exercises independent authority over its proxy voting decisions, evaluating each item based on its material relevance to the long-term financials interests of the portfolio, using its own analysis and judgement. Although the SBI may engage external parties for research and data, it retains sole discretion over voting decisions and outcomes, ensuring that not third party exerts influence or control. This independence underscores the SBI's commitment to managing the pension fund assets for the exclusive benefit of the plan participants and beneficiaries.