CalSTRS Announces Corporate Governance Work Plan Companies for

the 2004-05 Proxy Season 
Education Writers / Business Editors
SACRAMENTO, Calif.--(BUSINESS WIRE)--May 5, 2004
The California State Teachers' Retirement System
announced today the names of a dozen domestic companies that have been
placed on the $116 billion fund's Work Plan for the 2004-05 proxy
season. Over the next year, CalSTRS will work closely with these
companies with the expectation of improvements in their corporate
governance practices and in their financial performance. 
The Work Plan companies were selected based on financial
performance over one-, three- and five-year periods. Corporate
governance concerns and institutional investor interest in the stocks
were also considered. All the companies selected have underperformed
in both the broad market index and their industry peer groups during
the review periods observed. 
The companies selected are: 
--  Big Lots Inc. 
--  Crown Holdings Inc. 
--  Goodyear Tire & Rubber Co. 
--  Interface Inc. 
--  Libbey Inc. 
--  Long's Drug Stores 
--  Lucent Technologies Inc. 
--  Parametric Technology Corporation 
--  Qwest Communications International Inc. 
--  Sirius Satellite Radio Inc. 
--  Steelcase Inc. 
--  Thomas & Betts Corporation 
The Work Plan companies were selected from the fund's domestic
investment portfolio of more than 2,800 corporations. The fund has
significant long-term investments in the selected companies, as they
are primarily held in its indexed or passive accounts. Companies held
in those accounts do not trade on events or market news, but follow
the "buy and hold" philosophy of investing. 
"At 41 percent, our domestic equity portfolio is an enormous part
of the fund, the engine, if you will," said Christopher J. Ailman,
Chief Investment Officer of the fund. "We cannot overlook performance
outliers simply because we cannot trade away our disappointment. As
long-term owners, we have to be engaged with these companies as
partners in rehabilitating the health of the operating revenues,
margins and capital costs. Responsible corporate governance adds value
to our entire portfolio. Even five basis point improvement on our
domestic equity portfolio translates into a more than $24 million
value add--that's real money." 
Established by law in 1913, CalSTRS is the third-largest public
pension fund in the United States. It provides retirement, disability
and survivor benefits to California's public school teachers from
kindergarten through community college, serving more than 735,000
members and their families. CalSTRS is a defined benefit plan, with
guaranteed, lifetime benefits, which are not dependent on the
performance of the investment portfolio. 
California State Teachers' Retirement System
Sherry Reser, 916-229-3258
Press spacebar to pause and continue. Press esc to stop.