“We believe providing access to a company’s proxy by giving shareowners the ability to nominate directors to the board is one of the most important rights for owners of a company,” the two pension funds said in a letter Monday to shareholders. “Without effective proxy access, the director election process simply offers little more than a ratification of management’s slate of nominees.”
The terms for proxy access proposed by the $313.2 billion California Public Employees’ Retirement System, Sacramento, and the $170.6 billion New York pension fund are ownership of at least 3% of Humana’s outstanding stock, three years of continuous ownership and the ability to nominate up to 25% of the company’s board.
CalPERS and the New York pension funds hold about 846,000 shares of Humana stock combined.
A Humana spokesman could not immediately be reached for comment.