A corporate governance engagement analysis, conducted for CalPERS by the Wilshire investment consulting firm, shows private talks are more productive than the public scrutiny of a Focus List of firms that resist reforms.
The study supports CalPERS move to abolish use of its “name-and-shame” Focus List in November 2010 in favor of a solely private approach. Wilshire studied 169 companies. 59 of the firms were publically named on a Focus List and 110 companies were approached privately. Those firms approached privately demonstrated quicker movement to governance reforms and financially out-performed those on the public Focus List.