Access to be Waived by CalSTRS and Relational at Occidental

As reported by RiskMetrics and others, CalSTRS and Relational Investors “are threatening to wage a proxy fight at Occidental Petroleum over the oil company’s compensation practices and the board’s failure to abide by its retirement policy or announce a succession plan for its long-serving chief executive and chairman.” (CalSTRS and Relational Seek Four Board Seats at Occidental, 8/3/10) Interesting that they plan to nominate four to the 13 member board. That puts them above the 25% limitation expected to be imposed by the SEC’s proxy access rule. Why not nominate three and do it on the cheap?

See also, SEC Set to Open Up Proxy Process (WSJ, 8/5/10) Meeting is scheduled for Aug. 25. “Under the language being drafted, shareholders would have to own a 3% stake in a company for at least two years to qualify.” While it isn’t clear how the SEC’s final rule will handle proxy access at small companies, in my opinion that is where it is most needed.

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