CalPERS will oppose a Hewlett-Packard Co. shareholder proposal calling on the companys directors to nominate at least two candidates for each open seat on the board, providing for contested elections. California Public Employees Retirement System, Sacramento, "believes this proposal may cause adverse incentives for directors to pursue short-term performance issues at the expense of long-term goals, according to a statement. CalPERS owns 16 million shares of HP.
The $134 billion system will also abstain from voting on a proposal calling for the Palo Alto, Calif.-based company to expense executive stock options. CalPERS officials declined to give a reason for abstaining, and a CalPERS spokesman couldnt be reached for comment. But CalPERS will vote for another proposal urging that all future stock grants to senior executives be performance-based. "While we are hesitant to state that all future option grants should be performance-based, we support at least a significant majority of option grants in this form, the statement said.
The companys annual meeting is April 2 in Atlanta.