American Federation of State, County and Municipal Employees Pension Plan, Washington, next week will propose a nominating process to Tenet Healthcare Corp.s board of directors that would involve its shareholders. The $600 million plans proposal comes on the heels of the announcement that Jeffrey Barbakow will step down as chairman after Tenets annual meeting later this year; he will stay on as CEO.
Tenets three longest-serving directors will also leave the board after the meeting. Also, Tenet will declassify its board.
AFSCME, a shareholder in Santa Barbara, Calif.-based Tenet, introduced a shareholder resolution calling for splitting the chairman and CEO functions.
"Now the Tenet board must open up the director selection process to interested long-term shareholders who have been badly damaged over the last six months by the companys actions, said Gerald W. McEntee, AFSCME president and plan chairman.
The Tenet board will give any AFSCME proposal, such as any shareholder proposal, serious consideration, said Steven Campanini, director-corporate communications.