CalPERS will withhold its proxy votes for directors at companies that operate two major custodial banks, Mellon Financial Corp. and State Street Corp., because of audit issues.
At Mellon, CalPERS will withhold votes from Jared Cohon, Ira J. Gumberg and David S. Shapira, in part because they are members of the audit committee that authorized auditor KPMG to perform non-audit work. The pension fund will vote against ratifying KPMG as auditor. The Mellon shareholder meeting is April 20.
At State Street, CalPERS will withhold votes from David P. Gruber and Charles R. Lamantia because they are members of the audit committee that failed to submit the ratification of auditor Ernst & Young to a shareholder vote. The fund is voting for a shareholder resolution, calling for the annual election of directors; directors are now elected to staggered terms. The State Street meeting is April 21.
The $166 billion California Public Employees' Retirement System, Sacramento, owns 1.8 million Mellon shares and almost 1.6 million State Street shares.