CalPERS Calls on Shareowners to Vote for Performance-Based Stock Options at General Electric.Business Editors SACRAMENTO, Calif.--(BUSINESS WIRE)--April 8, 2003 The California Public Employees' Retirement System (CalPERS) issued a Shareowner share·own·er n. See shareholder. Noun 1. shareowner - someone who holds shares of stock in a corporation shareholder, stockholder investor - someone who commits capital in order to gain financial returns Alert today, asking fellow shareowners to join the pension fund in voting for a resolution that urges General Electric (GE) to adopt performance-based stock options. In a letter to GE's top 500 shareowners, CalPERS asked for an affirmative vote on proposal number #10, sponsored by the Amalgamated a·mal·ga·mate v. a·mal·ga·mat·ed, a·mal·ga·mat·ing, a·mal·ga·mates v.tr. 1. To combine into a unified or integrated whole; unite. See Synonyms at mix. 2. Bank Long View Collective Investment Fund and co-sponsored by the California pension fund. CalPERS owns approximately 47 million shares of GE common stock. "Standard stock options give windfalls to executives who are lucky enough to hold them during a bull market and penalize pe·nal·ize tr.v. pe·nal·ized, pe·nal·iz·ing, pe·nal·iz·es 1. To subject to a penalty, especially for infringement of a law or official regulation. See Synonyms at punish. 2. executives during a bear market," said Sean Harrigan, President of CalPERS Board of Administration. "Performance-based options will ensure that executives get payouts for true outperformance and not simply by keeping a seat warm during a rising market. We believe this provides greater incentive for long-term superior performance and better alignment of interests for shareowners." Performance-based options are either linked to an industry index, premium-priced stock options, or options that vest upon achieving specific performance targets. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. research conducted by The Corporate Library, based in Portland, Maine Portland is the largest city in the U.S. state of Maine, with a 2004 population of 63,882. Portland is Maine's cultural, social and economic capital. Tourists are drawn to Portland's historic Old Port district along Portland Harbor, which is at the mouth of the Fore River and part , at least 51 U.S. companies use some form of performance-based plans. "As a pre-eminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae American company, General Electric needs to set an example to other American corporations and adopt performance-based options," said Rob Feckner, Chair of CalPERS Investment Committee. "There is no better time in the financial markets than now for shareowners to have stronger alignment between their economic interests and those of management." CalPERS' letter to GE shareowners can be found on the fund's 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. web site at www.calpers-governance.org. CalPERS is the nation's largest public pension fund with assets totaling approximately $131 billion. The System provides retirement and health benefits to 1.3 million State and local public agency members and their families. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion