A coalition of pension funds and other investors — led by the Chicago Public School Teachers' Pension & Retirement Fund and public service union UNISON's staff pension fund — are urging Pearson PLC shareholders to vote in favor of a shareholder resolution calling for it to end its kindergarten-to-grade-12 testing and involvement in private school development.
“Shareholders representing 70% of Pearson's total stock will receive the letter,” said a news release from the American Federation of Teachers, which joined the effort to encourage support for the proposal.
The resolution “also calls for a halt to the (company's) plans to create schools for profit in parts of the world where there are no proper state education systems,” according to a statement from London-based UNISON.
“Pearson's approach to education commercialization could jeopardize future growth products,” said Jay C. Rehak, president of the board of trustees of the $9.8 billion Chicago teachers' pension fund.
“Pearson's current strategy has failed to produce long-term growth while seriously eroding shareholder value,” the AFT release said.
The members of the coalition expressed “their concern … that without a clear recovery plan, their investment in Pearson stock will continue to fall, jeopardizing pension payments to current and future pensioners,” the UNISON statement said.
Tom Steiner, Pearson director of media, said in an e-mail, “We always welcome engaged shareholder discussion, and the Pearson board has given this resolution due consideration. The resolution does not take account of the significant review we published for shareholders in January 2016. We recognize that there are opportunities in the U.S. for fewer and better tests. We would welcome AFT into this conversation.”
Pearson's annual general meeting is April 29 in London.
