Big pension fund weighs in on reform. (Business Briefs).It isn't just the regulators and members of Congress who are looking hard at the Enron Enron A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh situation and sounding alarms about accounting and reporting practices. So are big institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . Take Calpers -- the California Public Employees' Retirement System -- a big kahuna (person) kahuna - /k*-hoo'n*/ (From the Hawaiian title for a shaman) An IBM synonym for wizard or guru. with $172 billion in assets and holdings in more than 1,700 public companies. The giant pension fund says it will be "tightening the screws" on corporate directors and auditing firms in an attempt to prevent future debacles. Specifically, the Calpers board has voted to: * Oppose the election of any corporate director who, while sitting on a corporate audit committee, votes to approve retention of an external audit firm that also provides consulting or internal audit services to the company. * Oppose shareholder approval of an auditor retained by a company for more than five years, or one that performs consulting or internal audits for the same company. What's more, Calpers has directed its staff to set up task forces to look into a variety of practices, including: bolstering the standards for "independent" corporate directors; suggesting changes in accounting standards; and tightening conflict-of-interest rules for investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. , equity analysts and rating agencies. While Calpers doesn't wield wield tr.v. wield·ed, wield·ing, wields 1. To handle (a weapon or tool, for example) with skill and ease. 2. To exercise (authority or influence, for example) effectively. See Synonyms at handle. the disciplinary lash of the Securities and Exchange Commission or the stock exchanges, it has a very large checkbook and a considerable voice on corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. . Expect that voice to be heard. |
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