Morning. Welcome to the 2015 Voya Financial Annual Meeting of Stockholders. I would now like to turn the conference over to Rod Martin, Chairman and Chief Executive Officer of Voya Financial. Please go ahead, sir.
Good morning. Welcome to our 2015 Voya Financial Annual Meeting of Stockholders. It's 11:00 A.M. on Thursday, May 28, 2015, and I now call the meeting to order. I'm Rod Martin, Chairman and Chief Executive Officer of Voya Financial, and on behalf of our directors, officers, and employees, I want to thank you for attending our second annual meeting, which we are once again conducting virtually. We believe that this forum will allow more of our stockholders to participate in our annual meeting and hear our story. Following the official items of business, I'll provide a brief presentation and then take your questions. Now I will turn it over to our Corporate Secretary, Jean Weng, for the formal business of the meeting. Jean?
Thanks, Rod. Good morning, everyone. Before turning to the formal items of business, I would like to make a few introductions. We're happy to have with us members of our Board of Directors. We also have in attendance members of our Executive Committee and representatives from our independent accounting firm, Ernst & Young. Also attending is John Laino, designated Inspector of Election. Mr. Laino has filed with me both as inspector and has provided me with his duly executed certificate of quorum. As is our custom, we'll answer questions at the end of the meeting. Please know that stockholders desiring to ask any questions do so in writing by using the web portal provided. Only stockholders will be permitted to present questions. You must have your control number to do so. With that, we'll now begin the official business for this annual meeting.
As indicated in our proxy statement, we're here today to consider the following items. First, the election of the eight directors make up our Board of Directors. Second, the advisory vote on the approval of executive compensation. Third, the vote to ratify the appointment of Ernst & Young as the company's auditors for 2015. Finally, the stockholder proposal submitted by Mr. William Rosenfeld. The Board of Directors has unanimously recommended a vote against this proposal, as more fully discussed in the company's proxy statement. I have been advised that Mr. Eric Cohen will present this proposal instead. Operator, please unmute the line of the proponent. Mr. Cohen, you have three minutes to present your proposal. Please go ahead.
Thank you, Jean. My name is Eric Cohen, chairperson and co-founder of Investors Against Genocide. I'm here to present the Genocide Free Investing Shareholder Proposal. Many would suppose that 70 years after the end of the Holocaust and 12 years since the start of the genocide in Darfur, companies that value the public trust would avoid connections to genocide. Not Voya. Voya invests in the small set of problem companies that fund the regimes in both Sudan and Syria. The proposal specifically references PetroChina because the CNPC PetroChina group, widely recognized as the most complicit in the genocide in Sudan. PetroChina is the publicly traded arm of its controlling parent, CNPC. CNPC is the government of Sudan's largest oil industry partner, thereby helping fund ongoing government-sponsored genocide and crimes against humanity. CNPC is also Syria's largest oil partner, thereby helping fund that government's mass atrocities.
Sinopec is another large oil company that also operates in Sudan and Syria. As a result, ordinary individuals investing with Voya may inadvertently invest in companies funding genocide and crimes against humanity. Why does Voya insist on maintaining flexibility to invest in companies tied to genocide? There's no compelling reason for these investments, no fiduciary responsibility requires them, and avoiding the very small number of problem companies need not affect financial returns. Reasonable people may disagree on the definition of socially responsible or ethical investing, but few would knowingly invest in companies complicit in genocide. It is difficult to understand Voya's opposition to this proposal, since it is consistent with the stated values of the company. Voya's statement on corporate responsibility claims that it conducts business in a way that is socially, environmentally, and economically and ethically responsible.
Voya's statement of opposition claims that the proposal is unnecessary because our business practices already reflect our recognition and support for the protection of fundamental human rights and the prevention of crimes against humanity. How does Voya reconcile these claims with its insistence on maintaining flexibility to invest in companies tied to genocide? Voya's statement of opposition does not attempt to deny the connection between PetroChina and genocide, nor argue that investing in genocide is somehow better. Instead, it notes that it complies with U.S. sanctions with respect to companies doing business in Sudan and Syria. It states that Voya does not believe that adding additional procedures limiting otherwise lawful investments and our investment advisors' ability to select the best investments for their investors would be in the best interest of our stockholders or the investors.
Does Voya really believe that PetroChina and Sinopec are the best investments and in the best interest of stockholders and investors? Voya's published corporate values state, "We uphold both the letter and the spirit of the law." However, Voya fails that test with regard to U.S. sanctions, which explicitly prohibit U.S. companies from doing business with the oil industry in Sudan and Syria. ExxonMobil, for example, is precluded from supporting Sudan's oil industry. Voya insists on investing in foreign companies that provide these same services. Voya's investments in companies such as PetroChina and Sinopec clearly conflict with the spirit, if not the letter of the law. Voya's published corporate values emphasize the importance of customer passion, listening to our customers, and responding with a sense of urgency.
Voya disregards research that repeatedly shows that the vast majority of Americans want to avoid investments tied to genocide in Sudan today or anywhere else in the future. Further, Voya chose to ignore the overwhelming vote in favor of genocide-free investing at its own emerging countries fund in 2012. The voting results provided a clear indication of the voice of its customers, with 85% of the yes/no votes in favor of genocide-free investing. Yet the renamed fund holds shares in two oil companies helping fund genocide in Sudan. Voya still has no policy about investing in companies tied to genocide. As a result, its funds overall invest in all four of the oil companies supporting the government of Sudan. Voya's lack of action since 2012 mocks its claim to listen to its customers and to respond with a sense of urgency.
Voya's published corporate values state, "We are the we. We are one team, accountable individually and collectively." However, in discussions with Investors Against Genocide, Voya said that central management understood the problem of investments tied to genocide but was powerless because they would not notify their funds even if their central research showed that investing in a particular company was not ethical. Funds are somehow expected to repeat this research and reach their own conclusions, lacking any input. This approach seems both strange and inefficient, particularly since it obviously conflicts with Voya's corporate values. How does this approach add value to the Voya brand and make it stand for something? Adopting the proposal would go a long way toward establishing that Voya cares about its social responsibilities, is serious about its corporate values, and not only professes those values but also operates by them.
How does Voya reconcile its values and commitments to its opposition to genocide-free investment? Only a small percentage of investors are aware of the potential problem of investments tied to genocide, and few are familiar with the companies in which their funds invest. By contrast, Voya is both aware of the problem and capable of addressing it on behalf of your customers by adopting the proposal. Members of the board and management, if you choose to disregard your own stated ideals, I ask you to support the values of your customers. T. Rowe Price, TIAA-CREF, American Funds, 30 states, and 61 colleges can all take steps to avoid investments tied to genocide. Why can't Voya? This proposal is not difficult, and it is well within your abilities. In the face of genocide, it's the right choice, right for your customers, and right for your business.
Investors Against Genocide looks forward to working with you to find a way to implement a policy to draw the line at investing in-
Thank you, Mr. Cohen. At this time, if you have logged into the meeting with your control number and would like to make a comment or raise a question regarding any of the proposals, please submit your comments or questions through the web portal. Pause for 10 seconds. We'll now declare the polls open. Vote will now be taken on the foregoing four matters. If there are any stockholders logged on who have not already submitted a proxy and wish to vote their shares, you may do so now by clicking on the Vote Share button on your screen. If you have previously provided your proxy card or voted online, your shares will be voted accordingly. If you wish to change your vote, you may do so now. We'll now pause to allow stockholders to vote.
On behalf of the board, I would like to express my appreciation to all stockholders who returned their proxies. Polls for voting on all matters are hereby closed. I have received a report from the Inspector of Election on the votes cast. Preliminary vote report is as follows. As to the election of directors, a director received over 96% of the votes cast, and as such, Lynne Biggar, James Quick, Barry Griswell, Fred Hubbell, Rod Martin, Joe Tripodi, Debbie Wright, and Dave Zwiener is hereby elected. As to the second matter, over 95% of the votes were cast in favor of approving, on an advisory basis, compensation of the company's named executive officers. As to the third matter, over 99% of the votes were cast to ratify the appointment of Ernst & Young as the company's independent registered public accounting firm for 2015.
As to the final matter, approximately 4% of the votes were cast in favor of the Shareholder Proposal. This proposal did not pass. Full voting results will be reported by the company on a Form 8-K filed with the SEC within the next four business days. Before our Chairman and CEO, Rod Martin, provides a business update and takes your questions, I would like to remind everyone that statements made today that are not historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current expectations or beliefs. I call to your attention the fact that the company's actual results differ from these statements. As you know, the company has filed with the SEC forms that list some of the factors that may cause results to differ materially from these statements.
The company assumes no duty to update these forward-looking statements. Please also note that we will be discussing certain non-GAAP financial measures. In particular, all references on this call to ROE, return on equity, ROC, return on capital, or other measures containing those terms are to ongoing business adjusted operating return on equity or return on capital, which are each non-GAAP financial measures. For a reconciliation of these items to the most comparable GAAP measure, refer to our most recent investor supplement available on our investor relations website at investors.voya.com. With that, I turn it back to our Chairman and CEO, Rod Martin.
Thank you, Jean. Today, I would like to cover a brief overview of Voya Financial and update you on our transformation story. Briefly, I call to your attention the cautionary statement on the slide. In today's presentation, I will be talking about some non-GAAP measures and some forward-looking information. Voya Financial has strong retirement, investment, and insurance businesses that position us well to serve our customers and take advantage of several marketplace trends. Our mission is to make a secure financial future possible, one person, one family, and one institution at a time. Our capabilities encompass solutions that enable our customers to save, grow, protect, and enjoy their wealth to and through retirement and our vision is to be America's retirement company. We know this vision is big and bold. We believe we have the right business profile and the commitment to execution that will enable us to achieve this vision.
Voya's diverse businesses support our value proposition of providing asset accumulation, asset protection, and asset distribution products and services, plus guidance and advice. They also give us a diverse earnings profile. For the 12 months ended on March 31, 2015, our ongoing businesses generated $1.4 billion in adjusted operating earnings before income taxes. 71% of these earnings came from retirement and investment solutions. 29% came from insurance solutions. Voya has 13 million customers and approximately 225,000 points of distribution. We have total assets under management and administration of $486 billion and 6,500 employees. Our businesses hold market-leading positions, making us a top-tier provider in many markets, which also gives us significant scale. Not pictured here is our closed block variable annuity segment. As you know, this business is in runoff and is actively managed to preserve and protect rating agency and regulatory capital.
Voya's been through a tremendous transformation over the past several years. This transformation has resulted in significant achievements that have enabled us to deliver greater shareholder value. Prior to our IPO in May of 2013, we took actions to prepare the company for its transformation. These included a number of financial, operational, and cultural improvements, as well as plans to increase our return on equity and return on capital. Some of the actions that we took included de-risking our investment portfolio, strengthening our balance sheet, stabilizing our ratings, and establishing our ROE, return on equity, improvement plan. Since the IPO, we have grown operating earnings in our ongoing businesses, achieved our 2016 return on equity target of 12%-13% two full years ahead of schedule, generated significant excess capital and repurchased $1.4 billion of our shares, rebranded as Voya Financial, and established an independent board of directors.
Most recently, the liquidity of our stock increased as ING Group exited its stake in Voya almost two years earlier than was required. This was a significant milestone in our progress as an independent company. Separately, we have been recognized for the transformation that we have made and the strong culture that we have built at Voya. For example, in the first quarter of 2015, Standard & Poor's, Moody's, and Fitch all upgraded their ratings for Voya and its operating subsidiaries, and our credit spreads have narrowed significantly over the past few years. Additionally, in March, we were once again recognized by the Ethisphere Institute as one of the world's most ethical companies. Voya was one of only 132 companies around the globe to receive this impressive recognition. A key driver behind all that we have accomplished has been our employees.
Earlier this month, I, along with our executive committee, joined thousands of our employees in providing almost 12,000 hours of community service in our second annual National Day of Service. It was a 30% increase in the number of hours volunteered from last year and demonstrates our commitment to corporate responsibility. It also exemplifies one of our core values, which is we care. To summarize, we've had a substantial amount of success in terms of our financial performance and the value we've created in our businesses and for our shareholders. One example is the significant growth we've seen in our stock price. Since our IPO, Voya common stock is up roughly 136%. This compares with a 54% increase among our peers and a 33% increase in the S&P 500.
We believe this reflects our continued dedication to and execution of our strategy, as well as the confidence that we've earned from investors. Our higher stock price also reflects the significant increase we've driven in our return on equity, which reached 12.6% for the 12 months ended March 31, 2015. As I mentioned, we achieved our 2016 overall 12%-13% return on equity target by year-end 2014. Since 2012, we've grown our ROE more than 400 basis points. Our success is due to our talented people, our commitment to executing on our plans, and our relentless focus on our customers. We are now building on our positive momentum and raising the bar. In connection with our 2014 year-end earning results in February, we announced our new 2018 return on equity target of 13%-14%.
First, we announced that we will continue to execute a series of specific ongoing business initiatives to further improve performance and accelerate profitable growth. Second, we said we intend to make strategic incremental investments of $300 million-$350 million over the next four years. These investments are intended to reduce operating costs, simplify our operating model, increase our speed to market, and improve our customer service and differentiate us from our competitors. These investments will focus on three areas. First, we plan to accelerate our efforts to simplify Voya's IT infrastructure. Second, we will invest in digital and analytics capabilities. This will enable us to be more efficient, engage more closely with our customers, and enhance our understanding of their needs. Third, we will adopt a new outcome-oriented cross-enterprise strategy that will harness the power of our ongoing businesses so we can offer holistic customer-centric solutions.
These investments ultimately help drive ROE expansion, increase free cash flow, and accelerate earnings growth. At our Investor Day next week, we will provide more detail on these initiatives, as well as our 2018 ROC targets for each of our business segments. I encourage you to view the webcast on our investor relations website on Tuesday, June 2nd, so that you can hear more about our plans. Voya is in a stronger position than it was just two years ago. We've improved returns that we've achieved in our ongoing businesses and the significant excess capital that we are generating. We're excited about the future. Moving ahead, we will leverage the improvements that we've made and build upon our strong financial foundation to achieve our vision to be America's retirement company. With that, I will turn it back over to Jean. We can take any questions that you may have.
Thank you, Rod. At this time, we will be happy to answer any questions and address any concerns. We will now pause to see if there are any questions. Did in fact receive two questions, and as they are related, I will first read the questions and provide an answer. First question is, "Will Voya make an effort to avoid investments tied to genocide?" Second question is, "How does Voya reconcile its published values with its investments in PetroChina?
We will not comment on specific investments. As we stated in our proxy statement, we conduct our business in a socially responsible manner, and our concern for the protection of human rights is reflected in our code of business conduct and ethics, as well as through our environmental and social risk policy.
Pause a little bit more to see if there are any additional questions or comments. On behalf of the board and management of Voya Financial, I would like to thank you for participating in our annual meeting, and we greatly appreciate your continued support of Voya Financial. Meeting is hereby adjourned.
The conference is now concluded. Thank you.