Calpers needs overhaul.The Calpers Machine" (May 10) underscores the political muscle of Calpers, the powerful $166 billion pension fund that has been playing 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. watchdog over some of our nation's most powerful and successful corporate leaders. But is Calpers' pro-labor board and one-size-fits-all formula for determining corporate correctness creating the return for its fund participants'? The answer is no. The fund has underperformed the public pension fund median return for the past five years and next year the state's Independent Legislative Analyst estimates that Calpers losses will cost taxpayers an additional $2.6 billion. Calpers must stop trying to change the seating in corporate boardrooms and work on improving its own investment selection. But with 11 of the 13-member volunteer Calpers board members tied to union interests or positioning as future gubernatorial gu·ber·na·to·ri·al adj. Of or relating to a governor. [From Latin gubern candidates, their greater interest appears to be working to make headlines for their own professional gain and political meddling med·dle intr.v. med·dled, med·dling, med·dles 1. To intrude into other people's affairs or business; interfere. See Synonyms at interfere. 2. To handle something idly or ignorantly; tamper. . The result is Calpers" fund beneficiaries lose on their investments. It is time for Gov. Schwarzenegger to restructure Calpers' governance, providing the transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. and accountability that Calpers demands of the American businesses in which it invests. The time is right to change how Calpers board members are selected. Maryann Maloney Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. |
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