CalPERS Approves 1997 Corporate Governance Program.SACRAMENTO, Calif.--(BUSINESS WIRE)--Sept. 18, 1996--The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Public Employees' Retirement System (CalPERS) Board of Administration today unanimously approved the System's 1997 Domestic and International 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. Program. The program marks the Fund's 11th year in corporate governance. The System will expand its focus on individual board performance and accountability of company management. Also new this proxy season will be a "good workplace practices" program that publicly identifies companies that have achieved long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. economic performance for shareholders without sacrificing the company's workforce. In addition, CalPERS will identify companies that engage in the "Reverse Robin Hood Robin Hood, legendary hero of 12th-century England who robbed the rich to help the poor. Chivalrous, manly, fair, and always ready for a joke, Robin Hood reflected many of the ideals of the English yeoman. Scenario" -- a disproportionate dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por favoring favoringan animal is said to be favoring a leg when it avoids putting all of its weight on the limb. A part of being lame in a limb. of CEO/executive compensation over company employees. "Approval of our 1997 corporate governance efforts reaffirms the System's commitment to maintain a program that has proven to add value to our fund," said Dr. William D. Crist, President of the CalPERS Board of Administration. "As the largest public pension fund in the U.S., with more than one million people as members and beneficiaries relying on our future ability to pay, its crucial that the System work to safely maximize returns on investments in our retirement fund." In a major expansion, CalPERS will develop its own "Model U.S. Corporate Board" governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. standards and then evaluate and grade Corporate America's largest 300 companies against the principles identified. In addition to its domestic program, the board approved the first year workplan for the System's International Corporate Governance Program that was adopted in March 1996. The focus will be on the four countries with the Fund's highest equity exposure: Japan, United Kingdom, Germany, and France. The workplan focuses first on the development of country- specific principles that recognize the unique features of each market and calls for the communication of those principles to participants through conferences, and education and outreach Outreach is an effort by an organization or group to connect its ideas or practices to the efforts of other organizations, groups, specific audiences or the general public. programs. "Global competition is driving the reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the corporate governance systems in several foreign countries," said Charles P. Valdes, CalPERS Investment Committee Chairman. "Country market principles and best practices will provide the necessary road map to help guide the System to influence the emergence of shareholder-oriented corporate governance programs abroad that will produce significant benefits to the System." For a second year, the System will focus corporate governance efforts on smaller, midsize domestic companies outside of the Fortune 500 family. As in the past, the Domestic Corporate Governance Program will target 10 companies ranked among the poorest long-term relative performers as compared to their industry peers in the pension fund's domestic equity portfolio of more than 1,500 companies. Public announcement of the companies will be made in January. CalPERS strategy is to ask for a meeting with each company's independent directors to discuss issues of performance and shareholder value. If these companies fail to cooperate, CalPERS is prepared to take more aggressive actions, including filing shareholder proposals, voting against the management slate of directors, and pursuing other proxy remedies. CalPERS is the nation's largest public pension fund with asset totaling more than $100 billion. The System provides retirement and health benefits to nearly one million active and retired state and public employees and their families. CONTACT: CalPERS Brad Pacheco or Pat Macht, 916/326-3991 |
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