The Tobacco Settlement Endowment Trust (TSET) Board of Investors is committed to being an active and responsible shareholder. In the most recent board meeting in August, the TSET Board of Investors approved moving forward with submitting shareholder proposals to companies in which the fund is invested. The purpose of these shareholder proposals is to protect and grow current shareholder value, not to divest from companies. This represents the second time proposals of this kind have been presented, marking two consecutive years of the Board’s vigilance in its fiduciary duty and engagement with the companies held in TSET’s investment portfolio.
Oklahoma State Treasurer Todd Russ and Chairman of the Board of Investors said, “As fiduciaries, our responsibility is to ensure companies are financially positioned for long-term success. By engaging as active shareholders, we help maintain balance in the marketplace, getting back to neutral where decisions are guided by sound business practices rather than activist pressures. This approach strengthens companies, protects shareholder value, and supports the prosperity of Oklahoma investment.”
For decades, shareholders have largely ignored their responsibility by noting traditional areas of governance such as board composition, executive compensation, and financial disclosures. These areas remain important, but today the financial landscape has shifted. Companies are increasingly pulled into geopolitical issues, federal mandates, and regulatory pressures that can pose risks to the balance sheet. The courts have recently said, as fiduciaries, we cannot ignore the financial impact of these realities.
The TSET Board of Investors is no longer sitting idly by but taking its responsibility seriously and asking the fund to pay attention to this new terrain. Shareholder proposals are one of the tools investors use to ensure companies remain aware of these challenges and are managing risks responsibly. The intent is not to weaken or punish, but to strengthen and support companies to position them for long-term financial success.
Our philosophy is simple: to fulfill our fiduciary duty, we must act as true partners in helping companies make sound financial decisions, attract investment, and thrive in a rapidly changing world. That means encouraging transparency, accountability, and collaboration that benefits both the company and its investors’ bottom line.
This action is not taken by the State Treasurer alone, but by the approval of the Board of Investors. The Board is made up of Oklahomans, men and women who want Oklahoma, and the companies tied to it, to succeed. Our investments need to reflect that commitment. We invest in firms with strong Oklahoma roots because we want them to grow, compete, and remain a source of strength for our state.
Ultimately, our responsibility is to act in the best financial interest of the Trust’s beneficiaries. By being an engaged shareholder, TSET works to protect value, support companies, and build lasting prosperity for Oklahomans.
