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The California Public Employees' Retirement System (CalPERS) today urged the U.S. Securities and Exchange Commission at an upcoming meeting to consider investor views about access to the proxy to nominate corporate directors.
The SEC announced plans to review its election rule after the U.S. 2nd Circuit Court of Appeals disagreed with the Commission’s most recent interpretation of it. The case involved the American Federation of State, County, & Municipal Employees (AFSCME).
"This rule, which regulates shareowner proposals governing the election of directors, has an enormous impact on institutional investors such as CalPERS," Rob Feckner, the pension fund's Board President, said in a letter to SEC Chairman Christopher Cox. "Access to the corporate proxy materials by shareowner nominees therefore remains a critical issue."
Instead of simply responding to this litigation, CalPERS asked that the Commission give the proxy issue its full consideration.
"In response to the Commission's proposed rules relating to shareowner director nominations," Feckner said in today's letter, "the Commission received hundreds of comments from individual investors, industry groups, academics, corporations, and other interested parties. CalPERS believes these commentators should be given sufficient time and information to provide the same type of valuable input provided in response to earlier rulemaking. I respectfully request your assistance in ensuring that stakeholder input is given due consideration by the Commission."
A copy of the letter can be viewed on the CalPERS Web site at www.calpers.ca.gov.
CalPERS is the nation's largest public pension fund with assets totaling more than $210 billion. The System provides retirement and health benefits to more than 1.4 million State and local public employees, retirees, and their families.
