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- Press Release: CalPERS Commends Massey Energy's Plans to Improve Its Corporate Governance
Press Release
August 6, 2010
CalPERS Commends Massey Energy's Plans to Improve Its Corporate Governance
SACRAMENTO, CA– The California Public Employees' Retirement System (CalPERS) today welcomed Massey Energy Co.'s plans to upgrade its corporate governance and create a safety committee consisting entirely of independent directors.
CalPERS and public pension funds from other states, including North Carolina, New York and Connecticut, have been in discussions with Massey since an April explosion at one of the company's West Virginia coal mines killed 29 miners.
"In the wake of the tragedy, shareholders have been keenly focused on the board's accountability to its owners, so moves to introduce annual voting for directors and strengthen the board's oversight of management are vitally important," said Anne Simpson, CalPERS Senior Portfolio Manager for Corporate Governance. "We will be calling for shareholders to approve the reforms at the special meeting in October, and continuing to engage with the board."
In May, Massey said it would require all board members to stand for re–election each year. The changes Massey announced this week include:
- Allowing majority voting in non-contested director elections;
- Creating a Safety and Environmental Committee consisting entirely of independent directors;
- Amending the Corporate Governance Guidelines to clarify the responsibilities of the lead independent director;
- Prohibiting a Massey director who is a CEO of a public company from being on the boards of more than two public companies (other than his or her own board). Massey non-executive directors are prohibited from serving on the boards of more than five public companies.
The Massey Board also said it would hold a vote on a proposal allowing shareowners to call a special meeting. The proposal must be approved by at least 80 percent of the shares outstanding to take effect.
CalPERS, with approximately $209 billion in assets, is the nation's largest public pension fund and administers retirement benefits for more than 1.6 million active and retired State, public school, and local public agency employees and their families. For information about CalPERS, visit www.calpers.ca.gov.
Contact Info:
Office of Public Affairs
(916) 795-3991
Brad Pacheco, Chief
Contact: Wayne Davis, Information Officer
pressroom@calpers.ca.gov
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