Several large pension plans are lining up against the re-election of directors on the board of General Electric.
CalPERS will vote against the re-election of directors Andrea Jung, Alan G. Lafley and Robert W. Lane, according to a report of the $175 billion California Public Employees’ Retirement System, Sacramento.
Also, the $115.7 billion Florida State Board of Administration, Tallahassee, will vote against the re-election of directors Sam Nunn, Roger S. Penske and Mr. Lafley, according to an FSBA report.
The $860 million American Federation of State, County and Municipal Employees Pension Plan, Washington, will vote against the election of Jeffrey R. Immelt, CEO and chairman, as a director, and also against directors James I. Cash Jr., William M. Castell and Douglas A. Warner III, as well as Messrs. Nunn, Penske and Lafley, and Ms. Jung, according to a report by the plan.
However, the C$87.4 billion (US$70.4 billion) Ontario Teachers’ Pension Plan, Toronto, will vote for the election of all nominees for director, according to its report.
CalPERS and the Florida and AFSCME funds will vote in favor of a proposal calling for an annual non-binding shareholder vote on executive compensation and a proposal calling for the submission of “golden parachute” severance packages to a vote of the shareholders. Ontario Teachers will vote against both proposals.
All four funds will vote against a proposal calling for a study on the potential breakup of GE.
Among proxy-voting advisory firms, RiskMetrics recommends voting against Messrs. Penske and Lafley, and voting in favor of the proposals for a shareholder vote on executive compensation and executive severance.
ProxyGovernance recommends voting for all directors and against both the vote on executive pay and executive severance.
Egan-Jones Proxy Services recommends voting against Susan Hockfield, Rochelle B. Lazarus, Ms. Jung and Messrs. Penske, Cash, Lafley and Lane.
It also favors shareholder voting on executive compensation and executive severance.
All three firms oppose the study on a GE breakup.
GE’s annual meeting is Wednesday.
