Shareholders Want to Select Directors / on Texaco Board

THE JOURNAL RECORD, August 18, 1988 | Go to article overview
Save to active project

Shareholders Want to Select Directors / on Texaco Board

NEW YORK (AP) - Two big institutional shareholders in Texaco Inc. want a voice in nominating directors to Texaco's board, and some analysts said Wednesday the move could run into stiff resistance from Texaco management.

Officials of the California Public Employee Retirement System and the New York State Employees Retirement Fund will ask for a formal, long-term role in choosing Texaco directors. They plan to make the request at a meeting on Aug. 24 with Texaco President James W. Kinnear, said Richard Koppes, general counsel of the California fund.

The New York pension holds 3 million Texaco shares and the California fund has 783,000 of the company's 244.3 million shares outstanding. The California system is the largest public employee pension fund in the country with more than $46 billion in assets, while the New York fund controls $39 billion.

Two seats on the Texaco board are expected to open within the next year. The two pension funds want institutional shareholders in Texaco to be permanently represented on the board's nominating committee by ``independent'' delegates who are neither executives nor shareholders.

The two funds are not seeking to place direct representatives on the board's nominating committee, Koppes said, since they would get access to confidential information about Texaco that could conflict with their fiduciary responsibilities as money managers.

The pension officials could be tempted to buy or sell Texaco stock on the basis of that information - and probably would have to give up the right to trade the stock before joining the board.

``This could very well be an important development for all of corporate America,'' said Rosario Ilacqua, vice president of equity research at the investment firm Nikko Securities Co. International Inc.

Texaco declined comment on the issue. Anita Larsen, a spokeswoman at the company's headquarters in White Plains, N.Y., would only reiterate Kinnear's recent public promise to meet with representatives of the institutional investors.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Shareholders Want to Select Directors / on Texaco Board


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?