CALPERS, the California Public Employees Retirement System, release its "focus" list yesterday, highlighting six companies with poor stock performance and poor corporate governance. (Read the full announcement.)
CALPERS board president, Rob Feckner, said, "The stock performance and governance of these companies is unacceptable to us and other shareowners."
The six companies are:
- Brocade Communications Systems, Inc. (Nasdaq: BRCD)
- Cardinal Health, Inc. (NYSE: CAH)
- Clear Channel Communications (NYSE: CCU)
- Mellon Financial Corp (NYSE: MEL)
- OfficeMax (NYSE: OMX)
- Sovereign Bancorp (NYSE: SOV)
While I am generally reluctant to post criticism, I do want to point out that there is no one better to monitor stock price performance and corporate governance than large institutional investors. Frankly, they are in a much better position than regulators to identify and highlight real issues.
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