The California Public Employees’ Retirement System(CalPERS)has cited 11 underperforming companies for dismal stock performance and poor governance practice.
The firms on its annual focus list are Sara Lee, Eli Lilly, Tribune, International Paper, Tenet Healthcare, EMC, Dollar Tree Stores, Corinthian Colleges, Kellwood, Sanmina-SCI, and Marsh & McLennan, the parent company of Mercer.
“The long-term performance of all 11 companies is at least 20% behind their peers,” says the pension fund’s board president, Rob Feckner. “And they have resisted appeals to change corporate practices that make their boards unresponsive to shareowner interests.”
CalPERS is pursuing shareowner proposals at four of the 11 firms: Eli Lilly, Kellwood, Dollar Tree, and Marsh & McLennan.
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