The insignificance of proxy access

Virginia Law Review

Volumn 97, Issue 6, 2011, Pages 1347-1434

  Kahan, Marcel ^a   Rock, Edward ^b  

^a NEW YORK UNIVERSITY   (United States)

^b UNIVERSITY OF PENNSYLVANIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84855894799     PISSN: 00426601     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (153)

1. See Yin Wilczek, In Historic Rulemaking, SEC Allows Investors to Access Proxies to Nominate Directors, 42 Sec. Reg. & L. Rep. (BNA), 1617, 1621 (Aug. 30, 2010).
2. John Greenwald, Hang On, 13 Corp. Bd. Member, First Quarter 2010, at 22, 24.
3. Sarah N. Lynch, Business Groups Gear Up To Fight SEC Proxy Access Proposal, Dow Jones Newswires, Aug. 18, 2009, available at Factiva, Doc. No. DJ00000020090818e58i000aq (quoting Tom Quaadman, Executive Director at the U.S. Chamber of Commerce).
4. Kara Scannell, Proxy Plan Roils Talks on Finance Rules, Wall St. J., Mar. 17, 2010, at A2.
5. David A. Katz & Laura A. McIntosh, Senate Bill Adversely Affects the Landscape, N.Y. L.J., May 27, 2010, at 5.
6. David A. Katz & Laura A. McIntosh, Populists' Wish Lists Offer Legislative Parade of Horribles, N.Y. L.J., July 23, 2009, at 5;
7. See also David A. Katz & Laura A. McIntosh, Proxy Access: Not Then, Not Now, N.Y. L.J., Sept. 28, 2006, at 5;
8. David A. Katz & Laura A. McIntosh, SEC Revisits Shareholder Access to Director Nominations, N.Y. L.J., Aug. 30, 2007, at 5.
9. Joann S. Lublin, New Rule on Proxies Puts Heat on Firms, Wall St. J., Aug. 23, 2010, at B1.
10. Steven Epstein & Matthew Soran, Uncle Sam: A Most Effective Shareholder Activist?, TheDeal.com (July 13, 2009, 2:24 PM), http://www.thedeal.com/newsweekly/ community/uncle-sam-a-most-effective- shareholder-activist.php.
11. Editorial, Alinsky Wins at the SEC, Wall St. J., Aug. 30, 2010, at A14.
12. David Calusdian, Proxy Access: Time to Get Ready for Profound Changes, The Podium (Nov. 18, 2009, 1:16 PM), http://blog.investorrelations.com/2009/11/ 18/proxyaccess-time-to-get-ready-for-profound-changes.
13. Walter Calls for Action on Proxy Access, Disclosure, Other Governance Topics, Corporate Law Daily (BNA) (Feb. 19. 2009), http://0-news.bna.com.pacman. law.du.edu/cldn/display/batch-print-display.adp?searchid=14113940 (attributing phrase to SEC Commissioner Elisse Walter).
14. http://www.uschamber.com/press/releases/2010/october/us-chamberand- business-roundtable-commend-secs-decision-grant-stay-prox.
15. Bus. Roundtable v. SEC, No. 10-1305, 2011 U.S. App. LEXIS 14988 (D.C. Cir. July 22, 2011).
16. Staff of U.S. Securities and Exchange Commission Rep.: Review of the Proxy Process Regarding the Nomination and Election of Directors 3 (July 15, 2003), available at http://www.sec.gov/news/studies/proxyreport.pdf.
17. See Bill Baue, Opening Up Pandora's Box: SEC Proxy Roundtable Questions Role of Non-Binding Resolutions, SocialFunds (May 15, 2007), http://www.socialfunds.com/news/article.cgi/2293.html
18. Stephen Labaton, S.E.C.'s Chairman is Stepping Down from Split Panel, N.Y. Times, June 2, 2005, at A1.
19. AFSCME v. AIG, Inc., 462 F.3d 121, 123-24 (2d Cir. 2006).
20. See Nicholas Rummell, SEC Splits Proxy Access Votes as Cox Says 'Yea' to Two Proposals, Fin. Wk. (July 25, 2007, 6:11 PM), http://www.financialweek.com/ apps/pbcs.dll/article?AID=/20070725/REG/70725013/1036
21. L. Reed Walton, The SEC Denies Proxy Access, RiskMetrics Group Blog (Nov. 30, 2007, 10:33 AM), http://blog.riskmetrics.com/gov/2007/11/the-sec-denies- proxyaccesssubmitted- by-l-reed-walton-publications.html.
22. See Randall Smith & Kara Scannell, Regulator Schapiro to Run SEC for Obama, Wall St. J., Dec. 18, 2008, at A1.
23. Georgeson Inc. & Latham & Watkins LLP, Proxy Access Proposed Rules Published by SEC, Corp. Governance Comment. (June 15, 2009), http://www.georgeson.com/usa/download/corp-gov-commentary.html.
24. See generally Corporate Law Daily (BNA) (Aug. 20. 2010), available at http://news.bna.com/cldn/CLDNWB/split-display.adp?fedfid=17646623&vname= ccdbulallissues&fn=17646623&jd=a0c4a1c0v3&split=0 (noting that institutional investors favor a 3% threshold).
25. Annette L. Nazareth, SEC Urged to Defer Adopting Proxy Access Rules, Harv. L. Sch. F. on Corp. Governance and Fin. Reg. (Oct. 6, 2009, 9:01 AM), http://blogs.law.harvard.edu/corpgov/2009/10/06/sec-urged-to-defer-adopting- proxyaccess-rules.
26. See Kevin Drawbaugh, US CEO Lobby Doubts SEC Authority on Proxy Access, Reuters, Jan. 16, 2004;
27. Rachelle Younglai, SEC Aims for Proxy Access Rules in 2nd Quarter, Reuters, Apr. 27, 2010, available at http://www.reuters.com/article/ idUSTRE63Q47T20100427.
28. See Jeff Morgan, SEC Proxy Access Vote Delayed Until Early 2010, National Investor Relations Institute (Oct. 6, 2009), http://www.niri.org/Main-Menu- Category/advocate/Presidents-Note/SEC-Proxy-Access-Vote-Delayed-Until-Early- 2010.aspx.
29. 17 C.F.R. § 240.14a-11(b)(1) (2010).
30. 17 C.F.R. § 240.14a-11(b)(2) (2010).
31. See U.S. Chamber and Business Roundtable Commend SEC's Decision to Grant Stay on Proxy Access Rule, U.S. Chamber of Commerce (Oct. 4, 2010), http://www.uschamber.com/press/releases/2010/october/us-chamberand-business- roundtable-commend-secs-decision-grant-stay-prox.
32. Bus. Roundtable v. SEC, No. 10-1305, 2011 U.S. App. LEXIS 14988 (D.C. Cir. July 22, 2011).
33. Joseph A. Grundfest, Just Vote No: A Minimalist Strategy for Dealing with Barbarians Inside the Gates, 45 Stan. L. Rev. 857, 867 (1993).
34. See Laura M. Holson & Geraldine Fabrikant, Disney Chief to Leave, Setting Off Race for Job, N.Y. Times, Sept. 11, 2004, at C3.
35. See Matt Kelly, Proxy Access Update: A Review of Likelihood, Costs, Compliance Wk. (Oct. 12, 2004), http://www.complianceweek.com/article/1219/ proxy-accessupdate-a-review-of-likelihood-costs.
36. See Steven J. Spencer & Young J. Woo, Considerations for "Just Vote No" Campaigns, Activist Investment Developments, Schulte, Roth & Zabel, LLP 1 (Fall 2006), http://www.srz.com/files/News/5333c42b-1659-4caf-9540- c10b4a6a038c/Presentation/NewsAttachment/26d52d60-ac91-404e-8bbd-67bfae1332d0/ filesfilesArticle%20-%20AI%20-%20fall06%20-%20Considerations.pdf.
37. See Exit Eisner, L.A. Times, Sept. 30, 2005, at B10.
38. Claudia H. Allen, Study of Majority Voting in Director Elections, Neal, Gerber & Eisenberg, LLP i (Nov. 12, 2007), http://www.ngelaw.com/files/ upload/majoritystudy 111207.pdf.
39. See Press Release, California Public Employees' Retirement System, CalPERS 2010 Majority Vote Initiative Successful at Top Companies (Dec. 22, 2010), http://www.calpers.ca.gov/index.jsp?bc=/about/press/pr-archive/pr-2010/ dec/2010-majority-vote.xml.
40. See Data Series: SP500, S&P 500 Index, Federal Reserve Bank of St. Louis (Jul. 26, 2010, 10:01 AM ), available at http://research.stlouisfed.org/ fred2/series/SP500.
41. See Lucian Bebchuk & Scott Hirst, Private Ordering and the Proxy Access Debate, 65 Bus. Law. 329, 343 (2010)
42. Marcel Kahan & Edward Rock, The Hanging Chads of Corporate Voting, 96 Geo. L.J. 1227, 1237 (2008)
43. See Julie Connelly, What the Amended Rule 452 Means to You, Corp. Bd. Member, Third Quarter 2009, available at http://www.boardmember.com/ MagazineArticle-Details.aspx?id=3880.
44. 953 A.2d 227, 237 (Del. 2008).
45. See generally Marcel Kahan & Edward B. Rock, Corporate Constitutionalism: Antitakeover Charter Provisions as Precommitment, 152 U. Pa. L. Rev. 473, 495-96 (2003).
46. See also Comment Letter from James L. Holzman, Chair, Council of the Corp. L. Section of the Del. Bar Ass'n, to Elizabeth M. Murphy, Secretary, Sec. & Exchange Commission 4 (July 24, 2009), available at http://www.sec.gov/ comments/s7-10-09/s71009-65.pdf.
47. See Mark J. Roe, The Corporate Shareholder's Vote and its Political Economy, in Delaware and in Washington (Paolo Baffi Centre Research Paper No. 2011-94, 2011), available at http://papers.ssrn.com/sol3/papers.cfm?abstract-id= 1884110.
48. See, e.g., Troy A. Paredes, Comm'r, Securities and Exchange Comm'n, Speech at the 22nd Annual Tulane Corporate Law Institute (April 15, 2010) (transcript available at http://www.sec.gov/news/speech/2010/spch041510tap.htm).
49. NYSE: 2600 listed operating companies, including 450 from outside the U.S. See A Guide to the NYSE Marketplace, NYSE Group 3 (2006), available at http://www.nyse.com/pdfs/nyse-bluebook.pdf.
50. See NYSE and NYSE AMEX Equities Membership, NYSE Euronext, Inc., http://www.nyse.com/membership/equities/nyse.
51. Wilshire Fundamental Characteristics, Wilshire Indexes (April 29, 2011), http://web.wilshire.com/Indexes/Broad/Wilshire5000/Characteristics.html.
52. See Description of Wilshire 5000 Total Market Index, Wilshire Indexes, http://web.wilshire.com/Indexes/Broad/Wilshire5000/ (last visited May 17, 2011).
53. See History of OTC Markets Group, OTC Markets, http://www.otcmarkets.com/ about/otc-markets-history (last visited May 17, 2011).
54. See Georgeson, 2009 Annual Corporate Governance Review (2009), available at www.georgeson.com/usa/download/acgr/acgr2009.pdf.
55. Mid Cap, Investopedia, http://www.investopedia.com/terms/m/midcapstock. asp (last visited May 17, 2011).
56. Small Cap, Investopedia, http://www.investopedia.com/terms/s/small-cap. asp (last visited May 17, 2011).
57. See Russell 3000 Index, Russell Investments (Feb. 28, 2011), http://www.russell.com/indexes/data/fact-sheets/us/russell-3000-index.asp
58. Justin Canivet, Small Cap Analyst Coverage: An "Under-the- Radar" Dilemma, Focus, Apr. 2009, at 4, available at www.world-exchanges. org/files/file/Focus%200409.pdf.
59. Available at http://www.nasdaq.com/newsroom/news/pr2005/ne-section05-056. stm).
60. 17 C.F.R. § 240.14a-8(b) (2010).
61. 17 C.F.R. § 240.14a-1(l) (2010).
62. Moreover, under 17 C.F.R. § 240.14a-2(b)
63. Georgeson, 2010 Annual Corporate Governance Review 8 (2010), available at http://www.georgeson.com/usa/download/acgr/acgr2010.pdf.
64. See Georgeson, 2009 Annual Corporate Governance Review 48-49 (2009), available at www.georgeson.com/usa/download/acgr/acgr2009.pdf.
65. See Stephen Choi, Jill Fisch & Marcel Kahan, The Power of Proxy Advisors: Myth or Reality?, 59 Emory L.J. 869 (2010).
66. http://www.uua.org/documents/finance/uucef/100630-summary.pdf.
67. See Georgeson, 2009 Annual Corporate Governance Review 15 (2009), available at www.georgeson.com/usa/download/acgr/acgr2009.pdf;
68. See also AFL-CIO, AFL-CIO 2009 Financial Report (2009), available at http://www.aflcio.org/aboutus/thisistheaflcio/convention/2009/upload/ ec-finreport.pdf (stating $28 million of investments by the Reserve Fund at 2008 year end).
69. Available at http://www.ciff.org/assets/financial/CIFF-Financial- Statement-27-May-2010.pdf (stating 2009 year-end assets of £1,445 million, equivalent to over $2 billion).
70. Available at http://www.gao.gov/new.items/d10708t.pdf
71. Pension Benefit Guar. Corp., 2010 PBGC Annual Report 2 (2010), available at http://www.pbgc.gov/Documents/2010-annual-report.pdf
72. Pension Benefit Guar. Corp., Pension Insurance Data Book 2009, at 105 (2010), available at http://www.pbgc.gov/docs/2009databook.pdf (reporting total assets of $434.9 billion at the beginning of 2007).
73. Emp. Benefits Sec. Admin., U.S. Dep't of Labor, Private Pension Plan Bulletin: Abstract of 2008 Form 5500 Annual Reports 27 (2010), available at http://www.dol.gov/ebsa/pdf/2008pensionplanbulletin.pdf
74. 29 U.S.C. § 1104(a)(1) (2006).
75. Ciara Linnane, New York Comptroller Unveils Pension Fund Reform Plan, Reuters, Feb. 18, 2010, available at http://www.reuters.com/article/ idUSTRE61H3SD20100218
76. See CalPERS, Quarterly Report Filed by Institutional Managers (Form 13F-HR) (Jul. 22, 2010), http://www.sec.gov/Archives/edgar/data/919079/ 000114036110029935/form13fhr.txt.
77. See Facts at a Glance: Investments, CalPERS, http://www.calpers.ca.gov/ eip-docs/about/facts/investments.pdf
78. U.S. Equities, CalPERS (Nov. 15, 2010), http://www.calpers.ca.gov/index. jsp?bc=/investments/assets/equities/usequities.xml.
79. TIAA CREF, 2009 Annual Report 2 (2009), available at http://www.tiaacref. org/ucm/groups/content/@ap-ucm-p-tcp/documents/document/tiaa04018030.pdf.
80. TIAA CREF Investment Management, LLC, Quarterly Report Filed By Institutional Managers (Form 13F-HR) (Aug. 10, 2010), available at http://www.sec.gov/Archives/edgar/data/887793/000088779310000005/r30-0630.txt.
81. CalPERS owned 0.4% of Dollar Tree. See Dollar Tree, Definitive Additional Materials (Form DEFA 14A), at 2 (May 29, 2008), available at http://www.sec.gov/Archives/edgar/data/935703/000093570308000057/a.htm;
82. California Public Employees Retirement System, Notice of Exempt Solicitation (Form PX 14A6G), at 1 (May 29, 2008), available at http://www.sec.gov/Archives/edgar/data/919079/000119380508001433/ e603890-px14a6g-dollar.htm.
83. See CalPERS, Notice of Exempt Solicitation (Form PX14A6G), at 1 (May 15, 2008), available at http://www.sec.gov/Archives/edgar/data/790703/ 000118811208001684/t62731-px14a6g.htm.
84. See Interpublic Group, Definitive Proxy Statement (Form DEF 14A), at 2 (Apr. 18, 2008), available at http://www.sec.gov/Archives/edgar/data/51644/ 000104746908004848/a2184688zdef14a.htm;
85. CalPERS, Notice of Exempt Solicitation (Form PX 14A6G), at 1 (Apr. 28, 2008), available at http://www.sec.gov/Archives/edgar/data/51644/ 000118811208001447/t62529-px14a6g.htm.
86. CalPERS owned 0.4% of Hilb Rogal & Hobbs. See Hilb Rogal & Hobbs, Definitive Proxy Statement (Form DEF 14A), at 1 (Mar. 31, 2008), available at http://www.sec.gov/Archives/edgar/data/814898/000119312508070921/ddef14a.htm;
87. CalPERS, Notice of Exempt Solicitation (Form PX 14A6G), at 1 (Apr. 23, 2008), available at http://www.sec.gov/Archives/edgar/data/814898/ 000091907908000007/hrh-filing.htm.
88. See Standard Pacific Corp., Definitive Proxy Statement (Form DEF 14A), at 1 (Apr. 2, 2008), available at http://www.sec.gov/Archives/edgar/data/878560/ 000119312508072676/ddef14a.htm;
89. CalPERS, Notice of Exempt Solicitation (Form PX 14A6G), at 1 (Apr. 17, 2008), available at http://www.sec.gov/Archives/edgar/data/878560/ 000117152008000224/eps2936.htm.
90. See Eli Lilly & Co, Definitive Proxy Statement (Form DEF 14A), at 3 (Mar. 10, 2008), available at http://www.sec.gov/Archives/edgar/data/59478/ 000095013708003475/c22930ddef14a.htm;
91. CalPERS, Notice of Exempt Solicitation (Form PX 14A6G), at 1 (Mar. 28, 2008), available at http://www.sec.gov/Archives/edgar/data/59478/ 000119380508000951/e603562-pxa146g-calpers.htm.
92. See Health Net, Definitive Proxy Statement (Form DEF 14A), at 5 (2010), available at http://www.sec.gov/Archives/edgar/data/916085/000119312510088007/ ddef14a.htm;
93. CalPERS, Notice of Exempt Solicitation (Form PX14A6G), at 1 (May 3, 2010), available at http://www.sec.gov/Archives/edgar/data/916085/ 000117152010000282/eps3791.htm.
94. See Graco, Inc., Definitive Proxy Statement (Form DEF 14A), at 6 (2010), available at http://www.sec.gov/Archives/edgar/data/42888/000095012310023365/ c56457ddef14a.htm;
95. CalPERS (Form PX14A6G), at 1 (Mar. 30, 2010), available at http://www.sec.gov/Archives/edgar/data/42888/000117152010000236/eps3761.htm.
96. See Hospitality Properties Trust, Definitive Proxy Statement (Form DEF 14A), at 5 (2010), available at http://www.sec.gov/Archives/edgar/data/945394/ 000104746910001257/a2196573zdef14a.htm;
97. CalPERS, Notice of Exempt Solicitation (Form PX14A6G), at 1 (Mar. 25, 2010), available at http://www.sec.gov/Archives/edgar/data/919079/ 000117152010000222/eps3755.htm.
98. See Johnson & Johnson, Definitive Proxy Statement (Form DEF 14A), at 2, 58 (Mar. 12, 2008), available at http://google.brand.edgar-online.com/ DisplayFiling.aspx?TabIndex=2&FilingID=5794786&companyid=10313&ppu= %252fdefault.aspx%253fcompanyid%253d10313%2526amp%253bformtypeId%253d148 (Johnson & Johnson, 1%);
99. PepsiCo, Definitive Proxy Statement (Form DEF 14A), at 1, 49 (Mar. 24, 2008), available at http://sec.edgar-online.com/pepsico-inc/def-14a- proxystatement-definitive/2008/03/24/section2.aspx (PepsiCo, 1.4%).
100. Marcel Kahan & Edward B. Rock, Hedge Funds in Corporate Governance and Corporate Control, 155 U. Pa. L. Rev. 1021, 1045 (2007).
101. 17 C.F.R. § 240.14n-1 (2010).
102. See, e.g., Metropolitan Capital Advisors, Definitive Proxy Statement Filed by Non-Registrant (Form DEFN 14A), at 3-10 (Jan. 4, 2007) [hereinafter Metropolitan Proxy Statement], available at http://www.sec.gov/Archives/edgar/ data/864683/000119312507001082/ddefn14a.htm.
103. See Trian Fund Management, Definitive Additional Proxy Materials Filed by Non-Registrant (Form DFAN 14A) (May 23, 2006), available at http://www.sec.gov/Archives/edgar/data/46640/000095011706002372/ex1.htm
104. See Broadridge Financial Solutions, Inc., 2010 Proxy Season: Key Statistics & Performance Ratings 2 (2010) [hereinafter Key Statistics], available at http://www.broadridge.com/investor-communications/us/Broadridge- Proxy-Stats-2010.pdf
105. Compass Lexecon, An Analysis of Beneficial Proxy Delivery Services 14 (May 11, 2010) [hereinafter Beneficial Proxy Delivery Services], available at http://www.broadridgeinfo.com/ADPFiles/Compass%20Lexecon%20Report%20Final%2005- 14-10.pdf
106. NYSE Rule 465, 2 N.Y.S.E. Guide (CCH) ¶ 2465 (June 2010).
107. NYSE Rule 465, 2 N.Y.S.E. Guide (CCH) ¶ 2465 (June 2010).
108. See, e.g., The Committee for Concerned Cyberonics, Inc. Shareholders, Definitive Additional Proxy Materials Filed by Non-Registrant (Form DFAN 14A) (Jan. 12, 2007), available at http://www.sec.gov/Archives/edgar/data/864683/ 000119312507005900/ddfan14a.htm.
109. 17 C.F.R. § 240.14a-11(c) (2010).
110. Amendments to Rules Requiring Internet Availability of Proxy Materials, Securities Act Release No. 9108, Exchange Act Release No. 61,560, Investment Company Act Release No. 29,131, 75 Fed. Reg. 9073 (Feb. 26, 2010)
111. Shareholder Choice Regarding Proxy Materials, Exchange Act Release No. 56,135, Investment Company Act Release No. 27,911, 72 Fed. Reg. 422,221 (Aug. 1, 2007).
112. 17 C.F.R. § 240.14a-16 (2010);
113. These data are contained in a letter from Richard J. Daly, Group Co-President, Automatic Data Processing, Inc., to Nancy M. Morris, Sec'y, U.S. Sec. & Exch. Comm'n (Apr. 20, 2006), available at http://www.sec.gov/rules/ proposed/s71005/ccallan1565.pdf.
114. 17 C.F.R. § 240.14a-11(d) (2010).
115. 17 C.F.R. § 240.14a-11(b)(6) (2010).
116. See 17 C.F.R. § 240.14a-4(d)(4) (2010).
117. See Facilitating Shareholder Director Nominations, Securities Act Release No. 9136, Exchange Act Release No. 62,764, Investment Company Act Release No. 29,384, 75 Fed. Reg. 56,668, 56,723-24 (Sept. 16, 2010).
118. See 17 C.F.R. § 240.14a-4(c) (2010);
119. See also Facilitating Shareholder Director Nominations, Securities Act Release No. 9136, Exchange Act Release No. 62,764, Investment Company Act Release No. 29,384, 75 Fed. Reg. 56,668, 56,724 n.609 (Sept. 16, 2010)
120. 17 C.F.R. § 240.14a-4(c) (2010).
121. Yair Listokin, Management Always Wins the Close Ones, 10 Am. L. & Econ. Rev. 159, 175-78 (2008).
122. See 17 C.F.R. § 240.14a-2(b) (2010).
123. See 17 C.F.R. § 240.14a-11(d) (2010).
124. See Lucian Arye Bebchuk & Marcel Kahan, A Framework for Analyzing Legal Policy Towards Proxy Contests, 78 Calif. L. Rev. 1071, 1108-09 (1990).
125. See, e.g., Marcel Kahan & Edward Rock, Embattled CEOs, 88 Tex. L. Rev. 987, 1010 n.152 (2010).
126. For a recent Delaware opinion on majority vote bylaws, see City of Westland Police & Fire Retirement System v. Axcelis Technologies., Inc., 1 A.3d 281 (Del. 2010).
127. See Claudia H. Allen, Majority Voting in Director Elections-An Activist Success Story, Neal, Gerber & Eisenberg LLP (Nov. 13 2007), http://www.ngelaw.com/news/pubs-detail.aspx?ID=777.
128. See, e.g., Eric Ferkenhoff, Icahn Appears to Fall Short at Motorola, N.Y. Times, May 8, 2007, at C1 (detailing personal criticisms by Icahn of Motorola's board).
129. See, e.g., The Committee for Concerned Cyberonics, Inc. Shareholders, Definitive Additional Proxy Materials Filed by Non-Registrant (Form DFAN 14A) (Jan. 18, 2007) [hereinafter The Committee for Concerned Cyberonics, Inc. Shareholders], available at http://www.sec.gov/Archives/edgar/data/864683/ 000119312507008489/ddfan14a.htm.
130. See, e.g., Board Members, CalPERS (Jan. 25, 2011), http://www.calpers.ca. gov/index.jsp?bc=/about/organization/board/members/home.xml;
131. Structure and Responsibilities, CalPERS (Aug. 27, 2008), http://www.calpers.ca.gov/index.jsp?bc=/about/organization/board/ structure-responsibilities.xml.
132. See, e.g., Benn Steil, California's Sovereign Wealth Fund, Wall St. J., Mar. 7, 2008, at A14
133. See Roberta Romano, Public Pension Fund Activism in Corporate Governance Reconsidered, 93 Colum. L. Rev. 795, 796-98 (1993).
134. See, e.g., Danny Hakim, Cuomo Issues 100 Subpoenas in Pension Fund Inquiry, N.Y. Times, May 2, 2009, at A17.
135. Craig Karmin & Peter Lattman, Calpers Rocked By 'Pay to Play,' Wall St. J., Oct. 15, 2009, at A1 (discussing pay to play at CalPERS).
136. See Calpers and Cronyism, Wall St. J., Oct. 18, 2004, at A18
137. Jim Carlton & Jonathan Weil, Ouster Isn't Expected to Alter Calpers Policy, Wall St. J., Dec. 2, 2004, at C3
138. Jonathan Weil & Joann S. Lublin, Gadfly Activism at Calpers Leads to Possible Ouster of President, Wall St. J., Dec. 1, 2004, at A1
139. The New York City Pension Funds' 2006 Shareholder Proposals, The New York City Pension Funds 4-17 (2006), http://www.comptroller.nyc.gov/bureaus/bam/ corp-gover-pdf/2006-shareholder-report.pdf;
140. Postseason Report 2007 Shareholder Proposal Programs & Other Share ownership Initiatives of the New York City Pension Funds & Retirement Systems, The New York City Pension Funds & Retirement Systems 4 (2007), http://www.comptroller.nyc.gov/bureaus/bam/corp-gover-pdf/2007- Shareholderreport.pdf
141. See Michael Cooper, Hevesi Pleads Guilty to a Felony and Resigns, N.Y. Times, Dec. 23, 2006, at B1.
142. Danny Hakim & William K. Rashbaum, Hevesi Pleads Guilty in Pension Case, N.Y. Times, Oct. 7, 2010, at A19.
143. See Michael Corkery & Michael Howard Saul, Comptroller's Ireland Trip Questioned, Wall St. J., Oct. 9, 2010, at A17.
144. News Release, International Paper, International Paper Board of Directors Announces Annual Director Elections (Oct. 17, 2007), http://investor. internationalpaper.com/phoenix.zhtml?c=73062&p=irol-newsArticle- Print&ID=1064053&highlight=.
145. Gretchen Morgenson, Too Many 'No' Votes To Be Ignored, N.Y. Times, Sept. 20, 2009, at BU1.
146. See Broadridge Financial Solutions, Inc., Broadridge Report on Rule 452: The Elimination of the Broker Vote for Director Elections-Analysis of the Impact During the First Proxy Season 25-31 (2010), available at www.broadridgeinfo. com/.%20.%20./MASTER%20Steering%20Comm%2010-19-10%20FINAL.pdf).
147. Syniverse Holdings, Inc., Current Report (Form 8-K) (May 6, 2010), available at http://www.sec.gov/Archives/edgar/data/1169264/000119312510112812/ d8k.htm.
148. Mentor Graphics Corp., Current Report (Form 8-K) (July 1, 2010), available at http://www.sec.gov/Archives/edgar/data/701811/000119312510153532/ d8k.htm.
149. Skywest, Inc., Current Report (Form 8-K) (May 4, 2010), available at http://www.sec.gov/Archives/edgar/data/793733/000110465910027128/a10-6140-38k. htm.
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152. Blasius Indus. v. Atlas Corp., 564 A.2d 651, 652, 659 (Del. Ch. 1988).
153. See generally, Willie Sutton, Wikipedia, http://en.wikipedia.org/wiki/ Willie-Sutton (last visited Aug. 29, 2011).