Administration May 31, 2012

Md. Retirement System Joins Vote Against Wal-Mart Board

May 31, 2012 (PLANSPONSOR.com) – The Maryland State Retirement and Pension System will vote against the election of the entire board of Wal-Mart Stores.
Reported by

However, while pension systems in other states cited legal and regulatory misconduct in connection with bribery by officials at Wal-Mart’s Mexico subsidiary as their reason for voting against the board (see “Conn. Treasurer to Vote Against Wal-Mart Board”), the Maryland system cited a lack of confidence in the independence of board members for why it will vote its 1.2 million shares, worth $76.8 million as of May 29, against the board.  

“This action is required by the System’s U.S. Proxy Voting Guidelines, which clearly state that a substantial majority of a board of directors should not have any direct or affiliated connection to the corporation,” said R. Dean Kenderdine, the System’s Executive Director. “When less than two-thirds of a board is independent, we vote against all the candidates.”   

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

According to an analysis by the retirement system’s proxy adviser, Institutional Shareholders Services, six of Wal-Mart Stores, Inc.’s 16 board members are either officers of the corporation or affiliated with it in another capacity. The current composition of the board does not meet the two-thirds threshold as established by the System’s U.S. Proxy Voting Guidelines.

«