The TIAA-CREF and Florida State Board of Administration's (FSBA) shareholder proposal calling for the removal of the dead hand poison pill takeover defence from Profit Recovery Group International's (PRG) charter gained 63% of the vote at PRG's annual meeting.
A poison pill is a takeover defence, in which a takeover target tries to make its stock less attractive to an acquirer. Dead hand versions of the poison pill prevent directors elected in any proxy contest, who have not been approved by existing directors, from removing the pill. This, according to the TIAA-CREF, renders any hostile takeover near impossible.
According to Peter Clapman, the TIAA-CREF's senior vice president and chief counsel, the vote at PRG is a sign that: shareholders have declared dead hand poison pills to be totally unacceptable.
Based in New York, the TIAA-CREF currently has $290bn in assets under management. The TIAA is the Teachers Insurance and Annuity Association, and the CREF is the College Retirement Equities Fund, an open-end, diversified management company registered with the federal Securities Exchange Commission. TIAA-CREF also provides mutual funds, mutual funds IRAs, tuition savings programs, and trust services to the general public.
The FSBA is the state body that runs the $102bn defined benefit (DB) Florida Retirement System. The FSBA is currently in the process of creating a new optional defined contribution plan, the Public Employee Optional Retirement Program (PEORP).
PRG provides recovery audit services.
By Geoffrey Ho
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.