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Problems
Dale Hanson,
the chief executive of CalPERS, is worried that General
Electric's philosophical direction has become too
"soft." GE is pushing too fast, too far with
its mantra of "boundarylessness, speed, stretch and
simplification." Hanson mutters to himself,
"B.S.S.S.!! He writes the executives and
investment advisors at 15 other major public pension funds
and outlines his problems with GE’s directions.
Hanson suggests they have a meeting, with an agenda that
could lead to a proxy fight to replace the current GE board,
including Jack Welch. CalPERS makes no SEC filings or
other public disclosure.
Party
A (GE management) Argue that CalPERS has
violated the proxy rules. Explain the policy reasons
for this argument and outline your remedies.
Party
B (CalPERS) Argue that CalPERS has
not violated the proxy rules. Explain the policy
reasons for this argument and outline a legitimate
strategy for CalPERS.
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