Annaly Capital Management, Inc. Announces Recent Corporate Responsibility Initiatives and Enhancements
February 13 2019 - 4:21PM
Business Wire
Annaly Capital Management, Inc. (NYSE:NLY) (the “Company” or
“Annaly”), a leading diversified capital manager, continues to
demonstrate industry leadership across Environmental, Social and
Governance (“ESG”) practices with recent initiatives, achievements
and enhancements in its ongoing corporate responsibility
efforts.
“Annaly has a long-standing commitment to best-in-class
management and governance practices that have positive impacts on
shareholders, the Company, employees and society. We continue to
proactively build on our existing policies across the dimensions of
corporate responsibility and ESG that have been crucial to the
success and shared values of our business,” said Kevin Keyes,
Chairman, Chief Executive Officer and President. “Included in my
highest priorities upon becoming CEO in 2015 was to
enhance Annaly’s governance, corporate and financial
disclosure and meaningfully increase dialogue with our
shareholders. I am grateful for the thoughtful and supportive
feedback we have received, which has further validated Management’s
continuing efforts and Annaly’s overall leadership around corporate
responsibility,” Mr. Keyes continued. “I take pride in our focus on
these critical initiatives and what they represent for the future
of Annaly.”
Corporate Responsibility Highlights
Annaly continually focuses on integrating the following six key
areas of corporate responsibility into the Company’s overall
strategy: corporate governance, human capital, responsible
investments, risk management, ethics and integrity and the
environment.
Corporate Governance
- Today the Board of Directors of the
Company (“the Board”) appointed Dr. Kathy Hopinkah Hannan, PhD,
CPA, as a new Independent Director, representing the third female
Independent Director added to the Board since the beginning of
2018. A former Global Lead Partner, National Managing Partner and
Vice Chairman of KPMG, Dr. Hannan brings over 30 years of
financial, governance and corporate advisory experience to the
Board.
- The Company’s Board now consists of 12
members, of whom 83% are Independent, 42% are women and 25% have
tenure of less than five years.
- In the fourth quarter of 2018, Annaly’s
Board unanimously approved a bylaw amendment to declassify itself
and also adopted an enhanced Board refreshment policy with both a
mandatory retirement age and a tenure limit.
- Annaly expanded the reach of corporate
responsibility across the Company and the Board with the
appointment of Tanya Rakpraja as Head of Corporate Responsibility
and Government Relations in 2018, and the establishment of the
Public Responsibility Committee of the Board in 2017. Ms. Rakpraja
has nearly 20 years of experience in roles spanning community
development, finance and public policy, most recently at Capital
Impact Partners (“Capital Impact”) where she was Senior Director of
Strategic Lending Initiatives.
Human Capital
- In January 2019, Annaly was recognized
in the Bloomberg Gender-Equality Index for the second consecutive
year.
- Annaly remains committed to advancing
women in the workplace, evidenced by women representing 40% of
Managing Director promotions and 50% of additions to Annaly’s
Operating Committee since 2015.
- Annaly’s strong ownership culture is
demonstrated by the fact that 100% of the senior employees subject
to the Company’s voluntary Stock Ownership Guidelines meet, or are
on track to meet, such guidelines, and that 53% of employees across
the Firm own shares of Annaly common stock, an increase of over 50%
since 2015.
- Annaly’s Women’s Interactive Network
(“WIN”) continues to expand on initiatives that are focused on
championing diversity across the Company, including: professional
development, mentorship and internal employee engagement.
- Results of the annual employee
engagement survey showed 85% responded favorably across the
questionnaire in 2018, representing the third consecutive year of
score improvement and an increase of over 25% in positive support
from 2015.1
- Annaly’s 2018 voluntary turnover rate
of 7% compares favorably to the financial services sector voluntary
turnover rate of 17% in 2018.2
Responsible Investments
- Across its investment strategies,
Annaly has financed approximately 750,000 homes for Americans and
their families across 50 states3 and invested over $1.5 billion in
middle market businesses and commercial real estate that support
key pillars of the U.S. economy.4
- In January 2019, Annaly and Capital
Impact announced a second social impact partnership bringing
combined commitments supporting urban and rural communities across
the country to $50 million.5 The second joint venture invests in
affordable housing and community development projects in
Washington, D.C.
Risk Management
- In 2018, the Board and senior
management further enhanced the risk committee framework, deepening
the comprehensive oversight across the Firm.
- Annaly has significantly expanded the
capabilities and expertise of its Risk function, doubling the
number of professionals since 2015, while maintaining independent
oversight and approval of investment guidelines and credit
decisions.
Ethics & Integrity
- In the fourth quarter of 2018, the
Company implemented an enhanced corporate compliance function
responsible for the oversight of the Company’s regulatory
compliance.
- A newly appointed Chief Compliance
Officer, Miki Kamijyo, has reporting lines to the Board Audit
Committee and leads the Corporate Compliance Group. Ms. Kamijyo has
over 10 years of senior management experience in legal, regulatory
and compliance matters, and was most recently the Chief Compliance
Officer and Legal Counsel at GreenOak Real Estate.
Environment
- In 2018, Annaly launched an internal
Company-wide campaign to raise awareness and engagement with
employees around sustainability and conserving resources at its
corporate headquarters.
- The focus on operating responsibly
within Annaly’s headquarters also resulted in an extensive energy
audit to more thoroughly track and monitor the Company’s impact and
energy use.
- Annaly has invested nearly $430 million
in environmentally friendly buildings and businesses.6
Annaly encourages visitors to view the new Corporate
Responsibility section of its website, which features a detailed
narrative providing transparency and disclosure around Annaly’s
leading principles and efforts, at
www.annaly.com/corporate-responsibility.
About Annaly
Annaly is a leading diversified capital manager that invests in
and finances residential and commercial assets. Annaly’s principal
business objective is to generate net income for distribution to
its stockholders and to preserve capital through prudent selection
of investments and continued management of its portfolio. Annaly
has elected to be taxed as a real estate investment trust, or REIT,
for federal income tax purposes. Annaly is externally managed by
Annaly Management Company LLC. Additional information on the
Company can be found at www.annaly.com.
Forward-Looking Statements
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking
statements which are based on various assumptions (some of which
are beyond our control) and may be identified by reference to a
future period or periods or by the use of forward-looking
terminology, such as “may,” “will,” “believe,” “expect,”
“anticipate,” “continue,” or similar terms or variations on those
terms or the negative of those terms. Actual results could differ
materially from those set forth in forward-looking statements due
to a variety of factors, including, but not limited to, changes in
interest rates; changes in the yield curve; changes in prepayment
rates; the availability of mortgage-backed securities and other
securities for purchase; the availability of financing and, if
available, the terms of any financings; changes in the market value
of our assets; changes in business conditions and the general
economy; our ability to grow our commercial real estate business;
our ability to grow our residential credit business; our ability to
grow our middle market lending business; credit risks related to
our investments in credit risk transfer securities, residential
mortgage-backed securities and related residential mortgage credit
assets, commercial real estate assets and corporate debt; risks
related to investments in mortgage servicing rights; our ability to
consummate any contemplated investment opportunities; changes in
government regulations or policy affecting our business; our
ability to maintain our qualification as a REIT for U.S. federal
income tax purposes; and our ability to maintain our exemption from
registration under the Investment Company Act of 1940, as amended.
For a discussion of the risks and uncertainties which could cause
actual results to differ from those contained in the
forward-looking statements, see “Risk Factors” in our most recent
Annual Report on Form 10-K and any subsequent Quarterly Reports on
Form 10-Q. We do not undertake, and specifically disclaim any
obligation, to publicly release the result of any revisions which
may be made to any forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances
after the date of such statements, except as required by law.
_____________________________
1 Survey results based on 2018 Annaly internal survey conducted
by Perceptyx. Score represents average of underlying questions for
each category / item across the entire 50-question, 12-category
survey.
2 Financial Services Sector data per United States Department of
Labor, Bureau of Labor Statistics, “Job Openings and Labor Turnover
Summary”, using 2018 total.
3 Financial data as of December 31, 2018. Represents the
estimated number of homes financed by Annaly’s holdings of Agency
MBS, residential whole loans and securities, as well as
multi-family commercial real estate loans, securities and equity
investments. The number includes all homes related to securities
and loans wholly-owned by Annaly and a pro-rata share of homes in
securities or equity investments that are partially owned by
Annaly.
4 Represents the cumulative commitment value at investment date
of Annaly’s middle market lending and commercial real estate
investments in health care, data and technology, sustainable
environment and economic opportunities across communities,
including current and prior investments, through December 31,
2018.
5 Initial (November 2017) Joint Venture: Annaly’s investment
represents $20 million and Capital Impact’s investment represents
$5 million. Second (January 2019) Joint Venture: Annaly’s
commitment represents $20 million and Capital Impact’s commitment
represents $5 million.
6 Represents the cumulative commitment value at investment date
of Annaly’s commercial investments, including current and prior
investments.
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