One can just about sympathize with Democrat General Treasurer Seth Magaziner. When taxpayers across the state are complaining on talk radio that the tax return checks with his name on them seem greatly delayed and when the pension fund under his control is actually losing money, the politician must feel an intense pressure to come up with newspaper headlines that somebody might see as positive:
On Wednesday, Rhode Island Gen. Treas. Seth Magaziner announced a new policy that seeks to use the proxy-voting power that comes with Rhode Island’s billions of investment dollars to encourage companies to place more women and racial minorities on their boards of directors.
Unfortunately, many people fall for foolish politically correct showboating. Heretofore, the state’s index-fund manager, State Street Corp., has done the voting to which Rhode Island’s investments entitle the state. Presumably, State Street’s votes have been cast with an eye toward maximizing returns on its clients’ investments.
But maximizing returns is clearly not the priority of Rhode Island’s chief fiduciary, Seth Magaziner. Worse still, not only does Magaziner acknowledge that Rhode Island’s votes may make little difference, but the method by which it will cast them is hot-pan-on-a-silk-tablecloth dumb:
“Any time a man is nominated to be a director at a company where fewer than 30 percent of existing directors are women (or racial minorities), we will vote no. If we end up voting no at a high rate, we will be making an important statement on the financial materiality of board diversity,” Magaziner said.
No individual consideration. All that matters is body parts and skin color. Of course, I’m making an assumption, there; Providence Journal reporter Kathy Gregg didn’t ask Magaziner if the vote will be cast according to biological fact or by the personal assertions of the nominee.