CalPERS is calling on shareholders of Massey Energy Co. to support corporate governance reforms proposed by the company that would eliminate supermajority voting requirements.
The vote on the reforms is set for a special shareholder meeting called by Massey on Oct. 6, according to a CalPERS news release.
“Investors have pushed for these governance changes to strengthen accountability,” Anne Simpson, senior portfolio manager and head of the corporate governance program at the California Public Employees’ Retirement System, Sacramento, said in the news release. “Now is the time to act and make sure those changes take place.”
Glass Lewis and RiskMetrics Group, proxy advisers to the $210.7 billion system, support the reforms, which require company directors to stand for annual election and eliminate supermajority vote thresholds for amending bylaws and changing some business operations such as mergers, acquisitions and consolidations.
Adoption of the new corporate governance rules requires an 80% supermajority vote.
Shareholders also will vote on reforms restoring their right to call special meetings and shareholder authority over increases in common stock.