Skip to content Skip to navigation
- Home
- >
- Corporate Engagements
- >
- Focus List Program
Focus List Program
On November 15th, 2010, CalPERS adopted a new strategy for engaging underperforming public stock companies through confidential company engagements rather than by posting a public "name-and-shame" Focus List. However, some Focus List company engagements will continue to become public information - primarily through proxy actions and shareowner solicitations.
Flow Chart - 2011 Focus List Program (PDF, 185 KB)
Reform Focus List Companies
Find out which corporations that CalPERS is publicly engaging through the Focus List Program.
The 2011 Focus List process will include these steps:
- CalPERS will review the performance of the top 500 U.S.-based public companies in terms of CalPERS market value ranging from $15 million to $1 billion, including stocks and corporate bonds.
- The pension fund initially will screen companies for total stock returns for one, three, and five years relative to a broad index and industry group.
- A secondary screen will be applied to evaluate: key governance factors, financial analysis and market expectations. Key governance factors include but are not limited to: board quality with an emphasis on skill-sets and diversity, board independence, board leadership, director election practices, shareowner rights, succession planning, executive compensation, risk oversight and environmental and social issues.
- CalPERS will seek to meet with each selected Focus List company to better understand their governance structure and business strategy.
- CalPERS may request specific governance reforms and sponsor or support shareowner resolutions that promote positive corporate governance change.
"This approach expands our playing field with bigger companies than before," said George Diehr, Chair of the CalPERS Investment Committee. "It's consistent with our overall effort to stop the destruction of share value; to raise the bar for better environmental, social and governance practices by companies; and to comply with legislative mandates such as the federal financial market reform and Sudan and Iran divestment State laws requiring continuing engagement with some 40 portfolio companies."
November 15, 2010
CalPERS Adopts New Plan for Engaging Underperforming Portfolio Companies
March 17, 2010
Pensions & Investments: Success spurs CalPERS to Nix List for 2010
The "CalPERS Effect" on Targeted Company Share Prices (PDF, 216 KB)
Read an analysis which evaluates CalPERS' corporate governance effectiveness by measuring the performance of the stocks of the 142 companies targeted by CalPERS from its beginning in 1987 through the fall of 2008.