The Guardian (UK): Calpers chief says corporations were out to get him: “In Britain, the fund has been on the offensive against opaque structures at Shell and opposed the appointment of James Murdoch at BSkyB.” (ShellNews.net) 1 Dec 04

DAVID TEATHER IN NEW YORK

Dec 01, 2004

The head of the largest public pension fund in the United States yesterday said he was about to be forced out of the organisation after crossing swords with companies including Walt Disney, Citigroup, BSkyB and Shell.

Sean Harrigan, president of the California Public Employees' Retirement System, Calpers, since early 2003, told the Los Angeles Times that his re-election would be blocked by the fund's personnel board at a meeting in San Francisco later today.

He claimed to be the victim of lobbying by heavyweight corporate and political interests in the state.

Mr Harrigan has been an outspoken critic of corporate governance abuses and has taken some significant scalps. Calpers led the shareholder revolt against Walt Disney earlier this year that led to Michael Eisner being stripped of the chairman's job.

Calpers also played a pivotal role in the ousting of New York Stock Exchange boss Dick Grasso in a row over his $188m compensation package.

In Britain, the fund has been on the offensive against opaque structures at Shell and opposed the appointment of James Murdoch at BSkyB.

Mr Harrigan said corporate and political interests, including Walt Disney, were "trying to take out one of the most outspoken advocates on behalf of corporate governance in this country." He accused members of governor Arnold Schwarzenegger's administration of pressing for his removal. A spokesman for the governor dismissed the comment as a "conspiracy theory".

Calpers investment committee chairman Rob Feckner told The Guardian there was no concrete evidence of foul play but said it was clear Calpers has "made a number of enemies". He said Mr Harrigan's exit would only strengthen Calpers determination. "Corporate America unfortunately thinks that if they cut off the head of the lizard then the lizard will die. But our resolve will only get stronger because they are attempting to take us down."

Calpers' effort to use the $177bn fund as leverage for corporate reform has sparked anger among corporate groups like the Business Roundtable, which have accused Mr Harrigan of being a foil for unions.

Richard Hauck, president of the California Business Roundtable last night said his organisation had been "broadly critical of what Calpers is trying to accomplish, what's reasonable and what's not." But he denied any pressure had been applied for Mr Harrigan's removal.

A Calpers spokesman confirmed the content of the LA Times article was accurate but declined to comment further.

http://www.guardian.co.uk/business/story/0,,1363349,00.html