CalPERS Seeks Reforms at UnitedHealth.Urges Support for New Shareholder Resolution; Launches New Web Site "Heal UnitedHealth Group UnitedHealth Group Incorporated NYSE: UNH is a managed health care company. It is the parent of United Healthcare, one of the largest health insurers in the U.S. It was created in 1977, as UnitedHealthCare Corporation (it renamed itself in 1998), but traces its origin to a " SACRAMENTO, Calif. -- Stepping up a national effort to obtain meaningful shareowner nominations of directors, the California Public Employees' Retirement System (CalPERS) today announced it is seeking an important new reform at UnitedHealth Group - a company beleaguered be·lea·guer tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers 1. To harass; beset: We are beleaguered by problems. 2. To surround with troops; besiege. by a stock option backdating Predating a document or instrument prior to the date it was actually drawn. The negotiability of an instrument is not affected by the fact that it is backdated. scandal. The nation's largest public pension fund began sending letters to thousands of shareowners urging support of Proposal 4 on the company's proxy ballot and calling on the company to grant shareowners effective proxy access. The CalPERS proposal requests that the company allow for meaningful yet responsible access to the director nomination process to promote board accountability and a culture focused on creating long-term shareowner value. Also launched today is HealUnitedHealthGroup.com, a Web site where UnitedHealth shareowners can learn more about CalPERS views of the importance of the proposal, proxy access, and the problems at the company. The proposal is designed to allow owners who have held at least 3 percent of the company's stock for over two years to nominate two directors to management's election ballots. "Today at UnitedHealth, only the board is empowered to put a director nominee up for election on the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. ," said Rob Feckner, CalPERS Board President. "We believe boards that control their own membership can lead to a culture characterized by unaccountable and entrenched en·trench also in·trench v. en·trenched, en·trench·ing, en·trench·es v.tr. 1. To provide with a trench, especially for the purpose of fortifying or defending. 2. directors. It is our belief that such a culture may result in abusive executive compensation practices, fraud, and/or other misconduct - which in turn causes the destruction of shareowner value." Other support is growing for the proposal at the company's scheduled annual meeting on May 29. A significant number of shareowners and two proxy advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal agree that proxy access is a worthy concept. At Hewlett Packard's recent annual meeting, 39 percent of shareowners voted to endorse the concept. Those voting held a total of over $32 billion worth of HP stock. Others are voluntarily adopting proxy access. "Comverse Technology Comverse Technology, Inc. (Pink Sheets: CMVT) is an American Technology company located in Woodbury, New York, which develops and markets telecommunications software. Founded in 1982, the company focuses on providing services to third party telecommunication service providers. this past month amended its bylaws The rules and regulations enacted by an association or a corporation to provide a framework for its operation and management. Bylaws may specify the qualifications, rights, and liabilities of membership, and the powers, duties, and grounds for the dissolution of an to allow large long-term shareowners to nominate directors without having to wage costly proxy fights," said Russell Read, CalPERS Chief Investment Officer. "Even one state, North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , became the first in the nation to allow new corporations to include proxy access in their bylaws." UnitedHealth is one of more than 100 companies reportedly under investigation by federal regulators in the backdating of employee stock options that cost shareowners millions of dollars. The scandal prompted the departures of UnitedHealth Chairman and Chief Executive William McGuire last October, and of the company's chief financial officer and general counsel. CalPERS has 6.4 million UnitedHealth shares. The pension fund has total assets of approximately $240 billion and provides retirement and health benefits to approximately 1.5 million State and local public employees and their families. For more information on the UnitedHealth issue, visit www.healunitedhealthgroup.com. |
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