One of the most effective ways to fulfil our responsibilities as an active owner and convey our views to boards of directors and management of public companies is to vote our proxies at annual and special meetings of shareholders.

We oppose resolutions that are likely to reduce long-term shareholder value, even though they may produce short-term gains. We do this because our job is maximize returns without undue risk. We aim to create long-term value in the best interests of the Canada Pension Plan Fund’s more than 22 million contributors and beneficiaries  – both current and future generations. That means value for both our kids and our grandkids.

All of our proxy voting decisions are guided by our Proxy Voting Principles and Guidelines (PVPGs). Our PVPGs have two purposes: (i) to give the directors and officers of companies in which we own shares guidance on we are likely to vote on matters put to the shareholders; and (ii) to communicate our views on other important matters that boards will deal with in the normal course of business.

Our PVPGs are reviewed annually and contain guidelines, not rigid rules. We will respond to specific matters on a company-by-company basis.