Assessing the CalPERS Shake-Up

It was with sadness that I read that Sean Harrigan, president of the California Public Employees’ Retirement System, was being ousted by fellow board members as a result of lobbying from members of Gov. Arnold Schwarzenegger’s administration (Nov. 30). As he leaves CalPERS, Harrigan’s efforts to use the clout of the nation’s largest public pension fund to insist on corporate reforms will be sorely missed. In addition to improving the rate of return for California state employee pensioners, his efforts increased the rate of return for all investors.

Small investors must rely on the larger investors to insist on the corporate reforms that ensure fundamentally fair markets. Excessive executive compensation, Enron shenanigans and the forced resignations of Michael Eisner as Disney chairman and Richard Grasso, chairman of the New York Stock Exchange, were just a few of the issues he so courageously addressed. Directors should answer to the beneficiaries they represent, not to the corporations they invest in, or to the politicians in the pockets of the corporations.

Shame on you, Gov. Schwarzenegger, for attempting to interfere in the fair representation of California employees. May other pension directors be so bold as to stand up to the powers that want to discourage corporate reform.

Jane Affonso

Manhattan Beach

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Just as there are term limits that bring about rotation and fresh thinking to the California Legislature, it is in the greater public’s interest that there is also rotation or a form of “term limit” for the length of time a member of the state’s personnel board serves on the CalPERS Board. Ronald Alvarado, who will replace Harrigan as the board’s representative, will bring fresh thinking to CalPERS, and that is good public policy.

Diann Rogers

Gold River, Calif.