Activism
CalPERS names firms its says are ignoring shareholder concerns
US public pension fund, CalPERS, has
named 11 companies which make up its annual
focus list for 2007. CalPERS claimed that the long-term performance of all
the companies was at least 20% behind their peers and they have so far resisted
appeals to change corporate practices that it said make their boards
unresponsive to shareholder interests.
Among those named were food industry giant,
Sara Lee and the drug company,
Eli Lilly which do not provide shareholders
with any opportunity to amend their bylaws.
At the annual meetings of four of the focus list companies the pension fund will
put forward shareholder proposals.
At Eli Lilly it is seeking the right for a simple majority to amend bylaws;
at Kellwood, a textile and
apparel firm, it will seek annual elections for directors; at retailer,
Dollar Tree, and insurance firm,
Marsh & McLennan, the proposals address
supermajority voting rules for bylaw changes and excessive severance pay
agreements.
Links
CalPERS
2007 Corporate Governance Focus List
Sara Lee
Kellwood
Dollar Tree
Marsh & McLennan
April, 2007 |
