CalSTRS ‘Poison Pill’ Resolution Earns Support of Two Proxy Advisor Firms
Resolution calls for shareholder approval of corporate defense measures at Ball Corporation.
WEST SACRAMENTO, CA – A resolution proposed by the California State Teachers’ Retirement System (CalSTRS) at Ball Corporation (NYSE: BLL) warrants shareholder support, according to two leading proxy advisor firms.
RiskMetrics and Glass Lewis each recommend a FOR vote for the CalSTRS resolution which, if enacted at Ball Corporation’s annual meeting on April 28 in Broomfield, Colo., would require that any poison pills adopted by the company be ratified by shareholders within 12 months.
RiskMetrics’ analysis states that “poison pills insulate management from the threat of a change in control. They provide a target’s board with veto power over takeover bids that may be in shareholders’ best interests.”
Glass Lewis said that poison pills are generally “not conducive to good corporate governance. Specifically, they can reduce management accountability by substantially limiting opportunities for corporate takeovers.”
“It is in the shareholders’ interest to vote on poison pills as a way to increase management accountability,” said Anne Sheehan, CalSTRS director of corporate governance.
The California State Teachers’ Retirement System, which owns more than one million shares of Ball Corp., has a $138 billion portfolio and is the second largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 848,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts.