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The California Public Employees’ Retirement System (CalPERS) today announced it is opposing the re-election of four more directors to the boards of companies named in the backdating of employee stock options.
The directors headed compensation committees during periods when options were backdated. They are:
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Denis O’Leary of McAfee, which is based in Santa Clara, California;
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Michael Kaufman of Monster Worldwide, New York City; and
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Darwin Deason and Joseph O’Neill of Affiliated Computer Services, Dallas, Texas.
“We believe executive compensation committee leaders have the highest level of responsibility to ensure that compensation policies are above board,” said Russell Read, CalPERS Chief Investment Officer. “Our action also sends a message that shareowners are dissatisfied with this kind of performance.”
The CalPERS Board adopted a program in December 2006 to withhold votes from former chairs of compensation committees where the chief executive officer departed under a scandal of option backdating.
Under the program, CalPERS announced its opposition in April to the re-election of Ray Irani, who received a 19 percent withhold vote to the board of KB Home. Another of the company’s board members, James Johnson, would be subject to a CalPERS withhold vote in 2008 under the guidelines.
CalPERS is the nation’s largest public pension fund with assets totaling more than $245 billion. The System provides retirement and health benefits to approximately 1.5 million State and local public employees and their families.
