It is often said that good corporate governance helps reduce a company’s investment risk, ensures the effective deployment of shareholder capital, and ultimately contributes to the long-term performance of public companies. . . On the other hand, the absence of a robust corporate governance infrastructure can lead to poor decisions resulting in bad outcomes for the company and its shareholders.
SEC Commissioner Luis A. Aguilar has long been a champion of empowering shareholders to enforce sound corporate governance. In a July 1, 2014 address before a meeting of the Latinos on Fast Track (LOFT) Investors Forum, Commissioner Aguilar once again addressed the role pension plans and other institutional investors play in ensuring that the companies they invest in make sound governance decisions. Not only are pension funds obligated to vote their shares, according to Aguilar, but they should also work to make certain that shareholder voting rights are not restricted, and actively support measures that support shareholder rights and enhance their ability to communicate their views to management.