The California Public Employees' Retirement System, the nation’s largest public pension fund, is urging Shaw Group Inc. shareholders to demand the company ask for shareholder approval of large severance compensation for executives, according to this article from the Sacramento Business Journal.
The letter sent Wednesday seeks shareholder ratification of any Shaw Group severance package worth more than three times an officer's salary and bonus.
Shaw Group Inc., (NYSE: SGR) based in Baton Rouge, La., is an engineering, design and construction company.
"Historically, the Shaw Group Compensation Committee approved some of the most egregious severance and change-of-control provisions ever to catch the attention of CalPERS," CalPERS senior investment officer Christianna Wood said in a letter to shareholders. "We are not seeking to limit severance payouts, but we do believe that shareowners should have the ability to approve certain large payouts."