Pension Fund Files Shareholder Proposals on Corporate Governance

Citigroup and Goldman Sachs are among the 33 companies on the hot seat.

(January 22, 2010) — The American Federation of State, County and Municipal Employees (AFSCME) has submitted proxy proposals to foster greater director accountability and more reasonable executive compensation among 33 firms. 


“Wall Street executives have destroyed trillions of dollars in shareholder value while lining their own pockets,” said AFSCME President Gerald W. McEntee in a news release. “Our proposals are designed to make directors accountable and better focused on long-term value creation.”


The AFSCME Employees Pension Plan, an institutional shareholder with more than $850 million in assets, submitted proposals on a range of issues, including executive compensation, chairman and chief executive roles, and “golden coffin” awards. The news release stated that the plan’s proposals urge the interests of management to be more closely aligned with those of shareowners. While a majority of shareholder proposals fail, dozens have been successful at major companies in recent years.


AFSCME’s targets include Aetna Inc, American Express Co, Bank of America Corp, CVS Caremark Corp, Capital One Financial, Charles Schwab, Dow Chemical Co, Fifth Third Bancorp, JPMorgan Chase & Co, Hartford Financial Services Group, Raytheon Co, Wells Fargo & Co, and XTO Energy Inc.

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To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

Survey: Canadian Pensions Recover in 2009

Canadian pension plans rose by 16.2% for 2009, lifted by rebounding equity markets.

(January 22, 2010) – A 16.2% rebound in Canadian pension plans in 2009 helped regain some of the previous year’s losses, according to a recent survey by RBC Dexia Investor Services.

 “The speed of the rally, particularly in the second and third quarters caught pensions by surprise, as many remained under-exposed to equities,” said Don McDougall, director of advisory services for RBC Dexia. “Then again, after last year’s brutal 15.9% drop, it is reassuring to see pension plans claw back to precrisis state,” he said, according to the news release.

 

Canadian equities, the top performing asset class, posted its best calendar year since 1979, soaring 35.1%, while foreign stock markets also staged a solid comeback. In domestic bonds, Canadian pensions increased 7.9% in 2009, according to the release.

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“All sectors advanced, with most gaining double digits – but the top heavy weightings in financials, energy and the materials sectors accounted for more than 85% of the market’s rise this year,” said McDougall.
Established in January 2006, RBC Dexia Investor Services, with 5,400 professionals in 16 markets, offers a range of investor services to institutions globally, including Canadian pension funds. The company ranks among the world’s top 10 global custodians with $2.3 trillion in client assets under administration.



To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

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