Calpers seeks more sway in company board elections
SAN FRANCISCO, March 11 |
SAN FRANCISCO, March 11 (Reuters) - The largest U.S. pension fund, Calpers, may approach up to 58 corporations from Apple Inc to Google Inc to Coca-Cola Co to let shareholders block uncontested candidates from being elected to their boards, staff said in a memo on Thursday.
The move is intended to increase accountability of directors, said Calpers, an activist investor that has come under fire for bad investments and for not closely policing middlemen who help private equity firms sell investments to pension funds.
Calpers, the $206 billion California Public Employees' Retirement System, has a long history of pushing companies to change, and it now backs regulation of the middlemen, known as placement agents.
Staff at Calpers may file shareholder proposals to change voting rules after initial correspondence with the corporations, according to a letter to the fund's investment committee dated March 15, the day of the next committee meeting.
The committee will be asked to strike down a limit on shareholder proposals by Calpers, opening the door to such broad actions, staff said in a letter ahead of the meeting.
Currently candidates nominated by many corporations can win election with a plurality of votes -- which could be a single vote -- leaving shareholders unable to reject a candidate.
- Tweet this
- Share this
- Digg this