CalPERS Calls Out Sovereign On Governance Issues

Law360, New York (September 8, 2006, 12:00 AM EDT) -- A California public pension fund has said that Sovereign Bancorp Inc. needs to improve its accountability, and urged its fellow shareholders to move for the bank to hold annual, rather than staggered, elections for directors.

"CalPERS is very concerned about the company's accountability to its shareholders and its commitment to good corporate governance, particularly considering [Sovereign's] three-year stock performance," wrote Christianna Wood, CalPERS' senior investment officer of global equity, in a Sept. 7 letter released on Friday, according to Reuters.

The California Public Employees’ Retirement System...
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