Bill > HB4428

This bill mandates that the Board of Trustees for any state pension benefit plan (which refers to retirement plans established by Oklahoma or its subdivisions for employees) must vote on company proposals (decisions put forth by a company to its shareholders) and proxy proposals (proposals made by shareholders) based solely on "pecuniary factors." Pecuniary factors are defined as anything that a reasonable person would believe materially affects the financial risk or return of an investment, excluding non-pecuniary factors like environmental, social, or political goals. The Board must exercise these voting rights to maximize risk-adjusted returns for the benefit of plan participants. While the Board can hire a proxy advisor (a service that advises on voting) to help, this advisor must commit in writing to follow guidelines consistent with the bill's pecuniary factor requirement. Additionally, the Board must produce and publish an annual report on its website detailing all shareholder votes cast, including management's and any proxy advisor's recommendations, by March 1st of the following year.