Stringer, NYC Pension Funds Launch Shareholder Initiative

New York City Comptroller Scott Stringer has launched an initiative to enable shareowners to nominate directors at U.S. companies using the corporate ballot.

Stringer announced "The Boardroom Accountability Project" on behalf of the $160 billion New York City Pension Funds, of which he is custodian. The project, he said, seeks to give shareowners a choice in the election of directors of publicly held companies.

Stringer, in a Nov. 6 statement, called the project "a national movement to systematically improve the responsiveness of corporate boards to shareowners."

He added: "The current election procedures for most corporations would make Boss Tweed blush. We are seeking to change the market by having more meaningful director elections through proxy access, which will make boards more responsive to shareowners. With this right in place, we expect to see better long-term performance across our portfolio."

Proxy access is the ability for shareowners to nominate directors to run against a company's chosen slate of director candidates on the corporate ballot.  Chief executives and-or directors now pick nominees - often themselves - for election. 

This fall, Stringer filed 75 proxy access shareowner proposals, which request a bylaw to give shareowners who meet a threshold of owning three percent of a company for three or more years the right to list their director candidates, representing up to 25 percent of the board, on a given company's ballot.  The proposals will be subject to shareowner votes in 2015 at those companies that do not agree to the request.

The 75 proposals were filed based on three priority issues: climate change, board diversity and excessive CEO pay.

"As long-time supporters of proxy access for shareholders, we're pleased Comptroller Stringer has launched this campaign," said New York State Comptroller Thomas DiNapoli, who oversees the $180 billion New York State Common Retirement Fund.

The pension funds consist of the New York City Employees' Retirement System, Teachers' Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and the Board of Education Retirement System.

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