Proxy Advisors Back CalPERS' Board Accountability Proposal at Kohl's Corporation Shareowner Meeting
May 5, 2015
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Joe DeAnda, Information Officer
SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) has received endorsements for its board accountability proposal at Kohl's Corporation (Kohl's) from two major proxy advisory services, Glass, Lewis & Co. LLC (Glass Lewis), and ISS Proxy Advisory Services (ISS).
Glass Lewis and ISS are supporting Proposal 5 by CalPERS at the company's annual shareowner meeting on May 14 in Menomonee Falls, Wisconsin. The non-binding proposal asks Kohl's to add a proxy access provision to their bylaws that would allow large, long-term shareholders to be able to nominate directors to the company's board.
Glass Lewis, in their analysis of the CalPERS proposal sent to shareowners, stated: "Because directors serve as shareholders' representatives on the boards of companies in which shareholders invest, the election of directors is the most important proposal on which shareholders vote. Through their votes, shareholders can hold directors accountable and remove directors that fail to adequately represent shareholders' interests in overseeing management and ultimately working to increase shareholder returns."
Similarly, ISS reported: "Proxy access, if structured properly, is an important shareholder right. Access complements other best-practice governance features and is standard practice in many markets. A well-crafted proxy access right can provide shareholders with a means of effecting change without incurring the expense of launching a proxy contest."
View the CalPERS shareowner letter.
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.7 million members in the CalPERS retirement system and administers benefits for 1.4 million members and their families in our health program. CalPERS' total fund market value currently stands at approximately $306 billion. For more information, visit www.calpers.ca.gov.