CalPERS is developing an IPO governance strategic plan that addresses the governance expectations the $238.4 billion California Public Employees' Retirement System, Sacramento, has for public companies.
The plan would include core governance standards “such as removing dual-class, classified or plurality voting structures,” according to an Aug. 13 investment committee agenda.
Dual-class structures can give certain shareholders greater voting rights.
Other elements of instituting the plan would be to explore an equity trading strategy that “does not provide capital for IPOs coming to market which do not meet CalPERS governance expectations.”
Amy Norris, CalPERS spokeswoman, could not provide further details by press time.