CalSTRS Names Head of Corporate Governance.

Nationally Known Executive Michael McCauley to Expand Corporate Governance Efforts

SACRAMENTO, Calif. -- The California State Teachers' Retirement System (CalSTRS) announced today the appointment of nationally known executive Michael P. McCauley to guide its corporate governance program to a higher level of activism. He comes on board June 1, 2008.

"His skills and background make him an excellent choice to help CalSTRS achieve its corporate governance priorities for 2008. We are seeking increased diversity on corporate boards and better climate risk reporting by our portfolio companies regarding the reduction of greenhouse gas emissions," said Jack Ehnes, CalSTRS Chief Executive Officer. "Michael McCauley's expertise in working with international corporate governance issues and examining the relationship between executive compensation and corporate performance will strengthen our strategic focus on these vital challenges."

McCauley will provide key support to the CalSTRS Teachers' Retirement Board in the continuing pursuit of the highest standards of governance practices. He will lead CalSTRS' Workplan Program that turns around underperforming holdings through good corporate governance. McCauley will also guide the day-to-day activities of a staff of eight that oversees a $3 billion portfolio.

"Mike is a fine complement to our strong corporate governance team that has been so ably led by Janice Hester-Amey, who will now focus on proxy voting and the activist investment managers program," Chief Investment Officer Christopher J. Ailman said. "As a member of the Public Company Accounting Oversight Board's Standing Advisory Group, Mike has served as a national leader in improving corporate auditing standards. He will help raise CalSTRS' voice with the Securities and Exchange Commission, the New York Stock Exchange and other crucial policy makers."

CalSTRS has been a major force in improving corporate governance since 1985. It is a founding member of the Council of Institutional Investors, a nonprofit association of major long-term shareowners. McCauley's hiring reflects the CalSTRS board's growing interest in increasing the scope and impact of its corporate governance efforts, both domestically and internationally.

"CalSTRS has a strong track record as a leader in corporate governance and I look forward to joining with their great staff and helping CalSTRS constructively engage with companies to develop and maintain good corporate governance practices" McCauley said. "CalSTRS will continue as a strong and effective advocate for the best corporate citizenship practices."

McCauley comes to CalSTRS with more than 10 years of experience at the Florida State Board of Administration, the nation's fourth largest public pension fund. While at the FSBA, he worked as a senior corporate governance officer, as director of administration for client services and as the corporate affairs and research manager.

McCauley currently Co-Chairs the Council of Institutional Investors' International Corporate Governance Committee and is a member of the Public Company Accounting Oversight Board's Standing Advisory Group.

He received a bachelor's degree from the University of Florida and a master's degree in public administration from Florida State University. He is married with two children and will be relocating to Sacramento.

Established 95 years ago, the California State Teachers' Retirement System, with a $164 billion portfolio, is the second-largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California's 813,000 public school educators and their families from the state's 1,400 school districts, county offices of education and community college districts.