Tri-State CRI supports corporate governance that promotes long-term, sustainable shareholder value and inculcates respect for corporate social responsibility. Tri-State CRI typically addresses these issues through its proxy voting, weighing in on both shareholder and management proposals. These governance level efforts affect all of our environmental and social advocacy, enhancing shareholder input into corporate practices and improving oversight and transparency.
Corporate governance concerns can have direct bearing on Catholic Social Teaching, as in the issues of executive compensation and board diversity, and we address them both for the financial health of companies as well as for their societal implications. Especially given our strong membership of Women Religious, Tri-State CRI advocates for corporate boards that reflect gender and ethnic diversity as a matter of social equity. However, we also believe that diverse boards will better represent shareholders and make more informed decisions for the promotion of long-term shareholder value. Similarly, Tri-State CRI’s concern with growing economic inequality manifests in support of more moderate executive compensation. We believe that executive compensation should not only be tied to shareholder value creation and environmental and social performance, but also that there is no excuse for CEO pay packages in the tens of millions of dollars.
Tri-State CRI also supports corporate governance that injects shareholder input into corporate decision-making and robust accountability to shareholders. Issues such as Proxy Access, which enable shareholders to nominate directors to corporate boards, or the separation of the roles of Board Chair and CEO, directly influence the board’s attentiveness and accountability to shareholder concerns. These issues also bear directly on corporate boards’ capability of addressing environmental and social concerns, directing companies for long-term success while foregrounding the needs of society at large.