CalPERS' second thoughts

Sac Bee ^ | 7/24/04 | Dale Kasler

[NormsRevenge]

CalPERS is rethinking its controversial corporate governance campaign.

Facing criticism from business organizations and one of its own directors, the board of the influential, Sacramento-based pension fund will engage in "some soul-searching on the corporate governance program" at its twice-a-year retreat at South Lake Tahoe next week, said CalPERS spokeswoman Patricia Macht. "The board wanted to take a look at it because it did become such a lightning rod."

The California Public Employees' Retirement System took the unprecedented step this year of voting its shares against directors up for re-election to the boards of 2,700 U.S. companies, or about 90 percent of the companies in which it owns shares. The votes were a protest against companies that hired their auditing firms to perform consulting work, too. CalPERS considers the dual roles a conflict of interest that would compromise the integrity of the audits because the firms might ignore accounting problems to keep their consulting contracts.

But the campaign drew criticism from national business organizations, the California Republican Party and others. They argued that CalPERS was pushing a political agenda rather than watching out for the financial interests of its 1.4 million members.

[evolved_rage]

They argued that CalPERS was pushing a political agenda rather than watching out for the financial interests of its 1.4 million members.

But sadly, if they reduce the market value of the companies they attack, doesn't the state just throw money at them to maintain a certain minimal return. Those ba$tards can't lose in a declining market.

[independentmind]

Do you have to register to read the article? Is this required to be excerpted? If not, why not post the whole thing?

[NonValueAdded]

How is the CalPERS board elected? I, too, wonder about the conflict between their fiduciary role and their apparent political agenda. While forcing CalPERS and similar organizations to pass through proxies to their individual shareholders would be extremely difficult, having the shareholders vote on the board membership and their policies would be quite feasible.

[NormsRevenge]

Yes Yes and I wish we could. :-\

[Enterprise]

"the board of the influential, Sacramento-based pension fund will engage in "some soul-searching on the corporate governance program" at its twice-a-year retreat at South Lake Tahoe next week"

Ya right, the girliemen of the board are going to soul search in South Lake Tahoe. They should be forced to meet in Death Valley in junk mobile homes with no air conditioning.

[Ernest_at_the_Beach]

I thought the Governor appoints and the Senate approves....Willie Brown is on the Board....How else could he get there?