CalPERS is supporting a shareholder proposal for proxy access at McDonald's Corp., spokesman Joe DeAnda said Wednesday in an e-mail.
The fast food chain holds its annual meeting on May 21.
Proxy access would allow shareholders who meet minimum shareholder requirements of holding at least 3% of shares collectively to nominate candidates for up to 25% of the firm's board of directors. Currently, board nominations come solely from the company.
The McDonald's proposal was initiated by the $56 billion UAW Retiree Medical Benefits Trust, Ann Arbor. A UAW trust spokeswoman in a statement said it also has the support of the $163.4 billion New York City Retirement Systems and proxy advisory firms Institutional Shareholders Services and Glass Lewis.
The $305.3 billion California Public Employees' Retirement System, Sacramento, also initiated its own proxy access proposal at Kohl's Corp. The company's annual meeting is set for May 14.
CalPERS in a statement said Glass Lewis and ISS are also supporting their proposal, which is also seeking to allow shareholders who own 3% of shares to nominate candidates.
Both proxy access proposals mirror a rule by the Securities and Exchange Commission that was struck down by a federal appeals court in 2011.
CalPERS owned 722,814 shares of Kohl's with a market value of $38.1 million, and 2,936,580 shares of McDonald's with a market value of $295.8 million, as of June 30, 2014, states the retirement system's latest investment report.
The proxy access votes are strictly advisory; companies do not have to adopt the practice even if the majority of shareholders approve.
