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Hello, I'm Harry Keiley, Vice-Chair of the Teachers' Retirement Board
for the California State Teachers' Retirement System.
As fiduciaries for California's teachers, We're committed to the proposition
that better corporate governance leads to greater long-term value.
As the nation's largest teachers fund and 11th largest world wide,
We belive our responsibility as an active shareholder includes the advancement of boardroom diversity
Numerous studies acknowledge that diverse boards initiate strategic changes more effectively
increase the exchange of ideas and lead to better performance.
Many now believe this type of structure creates a safeguard against the single minded "group think"
that some blame for the 2008-09 financial crisis.
Recently, CalSTRS along with CalPERS, pioneered an online database of qualified, diverse board candidates.
The Diverse Director DataSource, otherwise known as 3D,
provides organizations with access to the best and brightest leaders in the country.
Most recently, CalSTRS played a visible role in the naming of Facebook Cheif Operating Officer
Sheryl Sandberg to its board of directors.
Fabebook is diverse in its employee ranks and among its nearly 60 percent female user base.
However that same diversity was not originally reflected in their board composition.
Facebook's positive response to a letter from CalSTRS earlier this year shows that a concerned investor
can help a vibrant corporation take an important step to create independent leadership.
But board diversity transcends much more than just visible demographics.
It represents a balanced copostion of different backgrounds, value systems and experience.
Ultimately, board diversity creates long-term shareholder value, which our members depend upon.
Owning a share in a company is not the end of a shareholder's influence,
rather it's the beginning of an on-going dialogue between investors and a company.
It is of the utmost importance that our efforts around these critical corporate governance issues
remain at a constant vigilance.