CalPERS Assails SEC Rollback Of Investor Rights - Denounces Action To Deny Shareowner Access To Corporate Ballots

The California Public Employees’ Retirement System (CalPERS) issued the following statement today about action by the U.S. Securities and Exchange Commission (SEC) on the proxy access issue:

"We are deeply disappointed that the SEC took away the right of shareowners to use company ballots to seek approval of director election procedures," said Rob Feckner, CalPERS Board President. "This is a serious wrong turn from the Commission’s duty to adopt regulations that ‘do no harm’ to investors."

"Today, the SEC nullified a federal appellate court ruling that has sustained shareowners’ right to use company ballots to post proxy access resolutions. In effect, the Commission has turned back the clock on corporate democracy by withdrawing a shareowner right that is taken for granted in other developed countries."

Chairman Cox said this rollback is needed to clarify legal uncertainty about shareowners’ ability to propose by-law changes. He said the SEC will revisit the issue when it has a full complement of commissioners next year.

"However, proxy access has created no uncertainty in the market this year," said CalPERS Chief Executive Officer Fred Buenrostro. "There have been no related legal challenges because of this illusory uncertainty. Instead of acting responsibly on this issue with a full Commission, the SEC has adopted a flawed measure that is contrary to the very purpose for which it was established."