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CALPERS VOTES AGAINST SEARS BOARD

 CALPERS VOTES AGAINST SEARS BOARD
 SACRAMENTO, Calif., April 29 /PRNewswire/ -- The California Public


Employees' Retirement System (CalPERS) announced today that it has voted against all Sears, Roebuck directors standing for re-election at the company's 1992 annual meeting.
 "Our proxy guidelines call for us, absent extraordinary circumstances, to vote for a company's director candidates, "noted Dale M. Hanson, chief executive officer of CalPERS. "In this case, however, Sears' continual poor performance, and the board's obvious reluctance to insist that CEO Brennan make the changes necessary to save this company, compelled us to express our displeasure in some tangible way," Hanson explained.
 In other voting actions, CalPERS also voted in support of four shareholders' proposals, contrary to the recommendations of Sears' management. These proposals concern strengthening the confidentiality of the proxy vote; eliminating the "staggered" terms of board directors; studying the issue of breaking Sears' four industry groups into separate companies; and amending the by-laws to require that the positions of CEO and chairman of the board be held by different people. "We feel that each of these proposals will help this company -- by strengthening the independence of the board and by asking that board to take a critical look at the managers' performance," Hanson further explained. CalPERS voted against one shareholder proposal, requiring each Sears director to own at least 2,000 shares of company stock. "We strongly believe that directors should be paid at least half of their fees through company stock, as a means of aligning director and shareholder interests," Hanson Stated. "However, this proposal would require the directors to spend about $90,000 of their own money to buy these shares, rather than receiving the shares as part of their compensation. We fear that this would act to deter potentially strong and valuable candidates -- candidates without $90,000 to spend -- from running for a board seat."
 CalPERS owns 1,972,600 shares of Sears stock, or approximately 0.6 percent of the company's outstanding common stock. CalPERS is the largest publicly funded retirement system in the nation, with assets totalling approximately $68 billion and membership covering over 970,000 people.
 -0- 4/29/92
 /CONTACT: Richard H. Koppes, 916-326-3666, for CalPERS/ CO: CalPERS; Sears, Roebuck ST: California IN: SU:


RM -- SF003 -- 4391 04/29/92 12:41 EDT
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Publication:PR Newswire
Date:Apr 29, 1992
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