Phil Angelides, California state treasurer, called on institutional investors to pressure corporations to reform their practices. "Not since the days of the robber barons of a century ago, or perhaps the dark days following the stock market crash of 1929, has America seen its financial institutions so heavily battered by revelations of corporate malfeasance, deception and fraud," according to "The Power of the Purse: How Investors Can Restore Integrity to Our Financial Markets," a report issued by Mr. Angelides today.
He said investors, particularly pension funds, must demand tough standards of ethical conduct and transparency, use their voting power to protect their rights as shareholders, support compensation policies that encourage creation of long-term value, and pursue innovative investment strategies.
