CalPERS is asking shareholders of Interpublic Group to support the system’s proposal to allow shareholders to cast annual advisory votes on executive compensation. The proposal will be up for a vote at the company’s May 22 annual meeting, according to a news release from the $240.1 billion California Public Employees’ Retirement System, Sacramento.
“Over the last five years, pay practices at Interpublic indicate the inability of the company’s executive compensation pay structure to drive shareowner value,” Dennis Johnson, senior portfolio manager of CalPERS corporate governance program, said in the release. Share performance trailed the Russell 3000 index by 86.3% and its industry peers by 46.7% over the five years ended March 31, while board pay increased, the release said.
Philippe Krakowsky, spokesman at New York-based Interpublic, did not immediately return a call for comment.
CalPERS owns 3.3 million shares of the company.
