CalPERS wants shareholders of insurance brokerage Hilb Rogal & Hobbs to back the pension fund’s proposal to have board members stand for annual elections. Currently, Hilb Rogal’s board members serve staggered terms, which can lead to an entrenched board, Dennis Johnson, senior portfolio manager at the $240.1 billion California Public Employees’ Retirement System, Sacramento, said in a news release.
In March, Hilb Rogal was put on CalPERS’ focus list of underperforming companies because of its declining share value, its supermajority voting requirements, its classified board, the lack of majority vote standard for director elections, and the absence of a clawback provision to recoup executive compensation in the event of employee fraud or misconduct, according to the release. CalPERS also will withhold votes for directors Warren Thompson and Theodore Chandler.
Laura Hawkins, Hilb spokeswoman, could not comment before press time.
CalPERS holds 150,000 shares of the company. Hilb Rogal’s annual meeting is scheduled for May 6.
