Pax Announces Successful Company Engagements on Board Diversity
Withdraws shareholder proposals at Oasis Petroleum and Territorial Bancorp
PORTSMOUTH, N.H. - March 31, 2014 - Pax World Management LLC, investment adviser to Pax World Funds (www.paxworld.com), and a leader in the field of sustainable investing, announced today that it withdrew proposals filed at Oasis Petroleum, Inc. and Territorial Bancorp, Inc., after receiving positive responses from both companies on the issue of diversity on their boards of directors.
Pax World’s shareholder resolutions requested that the companies take reasonable steps to ensure that women and minority candidates are in the pool from which board nominees are chosen. In addition, the proposals requested the companies to take action to improve their success in pursuing board diversity. Those steps are:
- Take every reasonable step to ensure that women and minority candidates are in the pool from which board nominees are chosen;
- Publicly commit themselves to a policy of board inclusiveness to ensure that: a) Women and minority candidates are routinely sought as part of every board search the company undertakes; b) The board strives to obtain diverse candidates by expanding director searches to include nominees from both corporate positions beyond the executive suite and non‐traditional environments like government, academia, and non‐profit organizations; and c) Board composition is reviewed periodically to ensure that the board reflects the knowledge, experience, skills, expertise, and diversity required for it to fulfill its duties.
- Report to shareholders, at reasonable expense and omitting proprietary information, on their efforts to encourage diversified representation on the board and the manner in which the Board will assess the effectiveness of its efforts and policy.
Pax World withdrew the proposals from consideration at each company’s 2014 annual meeting of shareholders when the companies agreed to amend their corporate governance policies to include gender and ethnicity as criteria for selection of any new director, and to periodically review board composition.
“Pax World sees board diversity as an indicator of sound management and a characteristic of well‐managed, forward thinking companies,” said Heather Smith, lead research analyst on the sustainable investing team at Pax World. “We are pleased and want to commend Oasis Petroleum, Inc., and Territorial Bancorp, Inc., for taking steps to formally affirm their commitment to board diversity.”
“Board diversity is an issue that Pax World is actively advancing through a number of ongoing initiatives,” she added. “We launched our ‘Say No to All Male Boards’ campaign in 2011 encouraging investors to withhold support from corporate proxy slates that do not include women directors. We are a founding member of the Thirty Percent Coalition which is working to achieve at least 30% female representation on corporate boards by 2015. And, we collaborate with and support other investor groups advocating for gender equality in boardrooms and businesses.”
As of 2/28/14, Oasis Petroleum, Inc., represented 0.2% and 2.7% of total assets of Pax World Balanced Fund and Pax World Small Cap Fund, respectively. Territorial Bancorp, Inc., represented 2.8% of total assets of Pax World Small Cap Fund. Holdings are subject to change.
About Pax World Management LLC
Pax World is a leader in sustainable investing, the full integration of environmental, social and governance (ESG) factors into investment analysis, security selection, portfolio construction and risk management. Pax World combines rigorous ESG analysis with equally rigorous financial analysis in seeking to identify better‐managed, industry leading companies that meet positive corporate responsibility standards, have a clear vision for managing risk, and are focused on delivering long‐term value to shareholders. Pax World launched the first socially responsible mutual fund in 1971 and today offers a family of mutual funds including ESG Managers® Portfolios, multimanager asset allocation portfolios powered by Morningstar Associates, LLC. For more information, visit www.paxworld.com.
Distributor: ALPS Distributors, Inc., Member FINRA.
ALPS is not affiliated with any company mentioned in this letter.