CalSTRS Urges Fellow Qwest Shareowners To Support Proposal For Independent Corporate Leadership.Business Editors SACRAMENTO, Calif.--(BUSINESS WIRE)--May 7, 2004 Concern regarding a sharp decline in the value of Qwest Communications
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. practices have prompted the California State Teachers' Retirement System to seek 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 support for its proposal to separate the role of Qwest's board chair from its chief executive officer. CalSTRS, which owns 4.7 million shares of common stock in Qwest, sent a letter yesterday to fellow shareowners requesting support for its proposal requesting that an independent director serve as board chair. The proposal will be considered at the board's annual meeting scheduled May 25. "If enacted, this proposal will provide a valuable oversight safeguard for shareowners and promote increased management accountability and transparency for investors," said Jack Ehnes, chief executive officer of CalSTRS. "It will eliminate the inherent conflict of interest created when an individual simultaneously serves as overseer and manager." The letter states that CalSTRS' belief that the recent financial performance of Qwest - its current $7.4 billion capitalization represents a 94 percent decline from a five-year high recorded in February 2000 - and the operation of the company under the former CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and chair "provides a case study of what can go wrong in a company that vests its two most critical positions in one person." The letter urges other Qwest shareowners to support CalSTRS' proposal. To view the CalSTRS letter, go to this news release posted under What's New on the CalSTRS Web site, www.calstrs.com. With a $116 billion investment portfolio, CalSTRS is the third-largest public pension fund in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It provides retirement, disability and survivor benefits to California's public school teachers from kindergarten through community college, serving more than 735,000 members and their families. CalSTRS is a defined benefit plan Defined benefit plan A pension plan obliging the sponsor to make specified dollar payments to qualifying employees at retirement. The pension obligations are effectively the debt obligation of the plan sponsor. Related: Defined contribution plan , with guaranteed, lifetime benefits, which are not dependent on the performance of the investment portfolio. CalSTRS currently is involved in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against Qwest, certain present and former officers and directors of Qwest, and other unrelated entities, involving claims of fraud, breach of fiduciary duties Noun 1. fiduciary duty - the legal duty of a fiduciary to act in the best interests of the beneficiary legal duty - acts which the law requires be done or forborne and violations of state and federal securities statutes. The claims asserted in that litigation do not relate to the proposal explained above. |
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