Institutional Activism

Daniel F. Pedrotty

AFL-CIO

Office of Investment

202-637-5379

WF – Bus Org October 26, 2010

• Director, AFL-CIO Office of Investment (2006-present); Counsel (2004-2006)

– corporate governance strategies for affiliate unions and pension fund trustees

– liaison to lawmakers, agencies (Treasury, SEC, CFTC) and media covering capital markets and corporate governance.

• Bio– Dickinson College (B.A. Political

Science 1999)– Wake Forest University School of

Law (J.D. 2002)– Associate, Philadelphia and

Washington law firms (2002-2003)– Gephardt for President campaign

(2003-04)

Worker funds are long-term investors ($6 trillion in retirement savings)

Public Employees($2.6 Trillion)

Union Sponsored($450 billion)

Corporate SponsoredCollectively Bargained

($1 Trillion)

CorporateSponsored($2 Trillion)

Equal access to proxy(shareholder nomination of directors)

11

108

7

6

54

3

2

1

9

Wall Street Reform Initiatives

AFL-CIO Agenda

AFL-CIO Reform Priorities

• Consumer Financial Protection Bureau

• Re-regulate the Shadow Banking System (derivatives, hedge funds & private equity)

• Limit reckless risk taking by big banks (Volcker Rule)

• Reform corporate governance & CEO pay– Proxy access– Say on pay– Majority voting

March on Wall Street, April 29, 2010

AFL-CIO Corporate Governance

• PayWatch: www.paywatch.orggives workers and trustees information on CEO pay, and includes materials for challenging “pay for pulse.”

• Key Votes Survey: Annual report which rates the voting practices of investment managers by surveying how they voted on a range of governance proposals.

• Proxy Voting Guidelines: Serves as a guide for pension trustees in voting their funds’ shareholder proxies.

Source: AFL-CIO analysis of pay data from 292 companies provided by salary.com.

Contact Information

Dan PedrottyAFL-CIO

815 Sixteenth Street, N.W.Washington, DC 20006

202-637-5379Dpedrott@aflcio.org

Office of Investment Website:http://investment.aflcio.org

The end