Information About

Calpers





CALPERS SHAREHOLDER PROPOSALS

Being one of the largest owners in the world (and the third largest purchaser of employee health benefits in the nation), CalPERS has attempted to use this power to change the way certain things are done in business. For example:

  • Demanding companies disclosed their Y2k readiness

  • Calling on companies which operate in offshore havens to repatriate to the United States

  • Calling for reform in Executive Compensation , especially Golden Parachute s

  • Suing the NYSE over allegations that their specialists (floor workers) engage in practices which hurt investors

  • Banning investment of its funds in nine companies that do business in Sudan until the government of that country halts ongoing Genocide



PRAISE AND CRITICISM


CalPERS has been both praised and criticized by some for its shareholder activism. Many feel that the organization has well represented the will of the employees whose pensions it manages by pushing for a wide array of causes, ranging from greater fiscal responsibility to social justice. Some others argue that this unduly interferes with business, is backed by a political agenda (citing the dominance of Democrats on CalPERS' board), and further encourages the belief that California is "anti-business." A recent president of CalPERS, Sean Harrigan, was removed from his position in December 2004, amid criticism for his activism on matters of corporate governance. He claimed his removal was politically motivated.http://www.usatoday.com/money/2004-12-01-calpers-president-ousted_x.htm

CalPERS has been criticized for being foolish to invest in "toxic waste" CDOs before the July 2007 mortgage meltdown,http://www.bloomberg.com/apps/news?pid=20601109&sid=aW5vEJn3LpVw&refer=news and for not publicly addressing the issue.http://wcvarones.blogspot.com/2007/08/wheres-calpers.html


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