CalSTRS to Vote 5.3 Million Shares Against Entire Wal-Mart Board

Jack Ehnes, chief executive officer of CalSTRS, the California State Teachers' Retirement System, made the following statement regarding CalSTRS' intent to vote its 5.3 million shares, worth $313.5 million, at the upcoming shareholder meeting: “CalSTRS believes former and current Wal-Mart executives and board members breached their fiduciary responsibilities. They did so by failing to respond to indications of a pattern of unethical conduct in the company's foreign operations. Beyond that, CalSTRS believes that in some cases, Wal-Mart leadership actively suppressed an internal investigation which would have brought these improper actions to light. Based on these allegations, which indicate a breakdown of corporate governance and lack of oversight that should have averted this situation, CalSTRS does not have confidence that the current board has the independence and leadership needed to address these difficult issues.