CalPERS has joined some 30 other institutional investors that sent letters to J.P. Morgan Chase, Bank of America, Northern Trust and 14 other financial companies urging them to hold a shareholder advisory vote on executive compensation, according to a Jan. 28 statement by the $207 billion system.
The other companies targeted are Morgan Stanley, Citigroup, Wells Fargo, U.S. Bancorp, Waddell & Reed, BB&T, Capital One Financial, American Express, PNC Financial Services, SunTrust, Fifth Third, Comerica, KeyCorp and Regions Financial.
The letters, which were sent Jan. 27 and released Jan. 28, note 40 companies already have voluntarily adopted “say on pay,” or the advisory vote on executive compensation, including Goldman Sachs, State Street and Bank of New York Mellon.
“While CalPERS doesn't see a shareowner advisory vote as a panacea, companies that adopt the policy will significantly advance sound governance goals of improved accountability to investors and the creation of long-term share value,” Joseph Dear, chief investment officer of the California Public Employees' Retirement System, Sacramento, said in the statement.
Connecticut State Treasurer Denise L. Nappier, who is the sole trustee of the Connecticut Retirement Plans and Trust Funds, Hartford, and Timothy Smith, senior vice president, Walden Asset Management, coordinated the appeal.
Other signatories include representatives of the California State Teachers' Retirement System; United Methodist Church General Board of Pension and Health Benefits; Firefighters' Pension Systems of Kansas City, Mo.; TIAA-CREF; and the Council of Institutional Investors.
Scott Silvestri, Bank of America spokesman, didn't comment, saying he hadn't seen the letter.
Joe Evangelisti, J.P. Morgan Chase spokesman, declined to comment. Douglas A. Holt, Northern Trust spokesman, couldn't be reached for comment.