Plan to Reduce Maxxam CEO’s Reach Fails

Maxxam Inc. Chief Executive and Chairman Charles Hurwitz will continue to oversee a staggered board of directors after a plan by environmentalists to reduce his corporate reach failed to win support from stockholders. Despite the added support of the $140-billion California Public Employees’ Retirement System, a measure calling for the annual elections of Maxxam’s directors was defeated 85% to 15%. Hurwitz owns 68.8% of voting stock power. The measure still could come back next year, however, because it garnered at least 3% of stockholders’ votes. CalPERS, the nation’s largest public pension fund, owns 229,000 shares of Houston-based Maxxam worth about $14 million. CalPERS wanted an end to the current staggered election procedure because a third of the board is elected every three years. Last year, CalPERS joined the As You Sow and Rose foundations, both from Northern California, in their criticism of logging practices by Maxxam-owned Pacific Lumber and threw support behind the groups’ measure to revamp how the board of directors is elected.