“As an owner of companies, we have a responsibility to ensure that these companies are run effectively. This season we focused on executive compensation, board quality, and board diversity. Studies show that companies with diverse boards tend to perform better than companies that do not have diverse boards. Performance is what drives returns and these returns are what ultimately benefits our members by paying their pension.”
Simiso Nzima, Investment Director Global Equity, says CalPERS is encouraging diversity on boards of directors because it improves corporate performance.