CalPERS Seeks Ouster of EDS Chief

The California Public Employees’ Retirement System appealed to other shareholders of Electronic Data Systems Corp. to strip Lester Alberthal of the chairman’s job at the lagging computer services company. CalPERS, which owns nearly 3 million EDS shares, asked for support in a letter to shareholders. The letter escalates a campaign against EDS management that began in February, when it put EDS on its list of worst-performing U.S. companies. The $140-billion fund asked shareholders to name an independent chairman--someone not already associated with Plano, Texas-based EDS--to whom Alberthal would be accountable for the company’s performance. The 54-year-old Alberthal would remain chief executive under the proposal, which is included in the company’s proxy statement. Shareholders are scheduled to vote on the proposal at the company’s annual meeting May 20. EDS has fallen short of analysts’ earnings estimates in four of the last six quarters. The company has struggled to compete since General Motors Corp. spun it off as an independent company. On Monday, shares of EDS fell 25 cents to close at $37.75 on the New York Stock Exchange. They are 30% lower than the June 1996 spinoff value. Alberthal and other EDS executives did not receive bonuses or stock options last year because of the company’s poor financial performance, according to the April proxy statement. “He’s been significantly docked in his pay,” company spokeswoman Cecilia Norwood said.