CalPERS applauds SEC vote on proxy access
26 August 2010 Sacramento
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The California Public Employees' Retirement System (CalPERS) has welcomed the Íø±¬³Ô¹Ï and Exchange Commission's decision to give long-term investors the opportunity to nominate skilled candidates to company boards.
"Today's adoption of the proxy access rule by the SEC is an important advancement of the principles of investor protection," said Rob Feckner, President of the CalPERS Board of Administration. "We commend the SEC for its thoughtful, fair rule, and we are confident that with its use it will be considered a win-win for business and investors."
Proxy access has long been CalPERS top corporate governance goal, and Fund officials worked vigorously throughout the past year to ensure that it remained part of the Dodd-Frank financial overhaul recently signed into law by President Obama. Last week, CalPERS and other public pension funds wrote to the SEC urging it to adopt meaningful proxy access rules.
"We believe that proxy access is one of the most important tools we have to improve corporate governance in America's boardrooms," said Joseph A. Dear, CalPERS Chief Investment Officer. "When necessary, long-term investors now have an opportunity to propose for election to a board knowledgeable individuals who can bring fresh ideas and new perspective to a company's operations."
The new rule gives shareholders who own 3 percent of a company's stock for at least three years the opportunity to nominate a board candidate. Shareholders will be limited to a total number of nominees not to exceed 25 percent of the board at any given company and cannot nominate candidates with intent to take over the company or control of the board.
"Today's adoption of the proxy access rule by the SEC is an important advancement of the principles of investor protection," said Rob Feckner, President of the CalPERS Board of Administration. "We commend the SEC for its thoughtful, fair rule, and we are confident that with its use it will be considered a win-win for business and investors."
Proxy access has long been CalPERS top corporate governance goal, and Fund officials worked vigorously throughout the past year to ensure that it remained part of the Dodd-Frank financial overhaul recently signed into law by President Obama. Last week, CalPERS and other public pension funds wrote to the SEC urging it to adopt meaningful proxy access rules.
"We believe that proxy access is one of the most important tools we have to improve corporate governance in America's boardrooms," said Joseph A. Dear, CalPERS Chief Investment Officer. "When necessary, long-term investors now have an opportunity to propose for election to a board knowledgeable individuals who can bring fresh ideas and new perspective to a company's operations."
The new rule gives shareholders who own 3 percent of a company's stock for at least three years the opportunity to nominate a board candidate. Shareholders will be limited to a total number of nominees not to exceed 25 percent of the board at any given company and cannot nominate candidates with intent to take over the company or control of the board.
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