For Immediate Release
Thursday, March 18, 2004
AFSCME Comments on Shareholder Director Nomination to the Marsh & McLennan Board
WASHINGTON —The AFSCME Employees Pension Plan, the New York State Common Retirement Fund, California Public Employees' Retirement System and the California State Teachers' Retirement System today announced that they are withdrawing their proxy access shareholder proposal at the Marsh & McLennan Companies, Inc. (MMC). The withdrawal comes in response to the company's announcement that it is adding Zachary W. Carter to the management slate of nominees for election to its board of directors at its annual meeting on May 20.
"Zachary Carter's background as a federal prosecutor makes him an appropriate watchdog for the shareholder's interest. As a new independent director Carter strengthens the board by making it more accountable and sensitive to shareholder concerns," said Gerald W. McEntee, AFSCME Employees Pension Plan Chairman.
"When investors and management can operate on a level playing field, everyone benefits. The proposed proxy access rule would give shareholders the power they need to effectively work with boards and nominating committees," McEntee added. "The fact that Marsh & McLennan is willing to add an independent director to its board goes a long way to disprove businesses' claim that proxy access would be destructive."
In December, an investor group, including the AFSCME Employees Pension Plan, the New York State Common Retirement Fund, California Public Employees' Retirement System and the California State Teachers' Retirement System which together holds 6.85 million shares, worth $306,000,000 or about 1.3 percent of the company, filed a shareholder proposal that sought access to the proxy to nominate and elect independent directors not picked by management. This was the first use of the Securities and Exchange Commission's (SEC) proposed proxy access rule, currently pending before the Commission.
The American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, is the nation's largest and fastest growing public service employees union with 1.4 million members. AFSCME organizes for social and economic justice in the workplace and through political action and legislative advocacy.
