To: goldworldnet who wrote (163 ) 12/2/2004 3:58:05 PM From: Peter Dierks Read Replies (1) | Respond to of 71588 Board boots Democrat from pension fund job By MICHAEL B. MAROIS Bloomberg News Dec. 2, 2004, 12:14AM Sean Harrigan, president of the California Public Employees' Retirement System board, was ousted Wednesday after clashing with Republican leaders and the state chamber of commerce. The California Personnel Board, which runs the state's civil service system, voted 3-to-2 against returning Harrigan, a Democrat, to the Calpers board after his term expires in January. The personnel board, which has one of 13 Calpers seats, selected Ron Alvarado, a Republican real estate developer, to take Harrigan's place as a director of the largest U.S. pension fund. Alvarado was appointed to the board by former Republican Gov. Pete Wilson. Harrigan, vice president with the International Food and Commercial Workers Union, had been accused by Republicans of using the $177 billion pension fund to back labor initiatives and corporate reforms opposed by business groups. "This administration has sided with the Republican Party and business leaders," Harrigan said during the meeting. Under Harrigan, Calpers tried to pressure companies on executive compensation and conflicts of interest. This year it was criticized for withholding votes for directors, including Warren Buffett, the billionaire investor who has long been an advocate of shareholder rights and was an economic adviser to Republican Gov. Arnold Schwarzenegger. The pension fund, which earned 16.7 percent on investments in the year ended June 30, backed a group seeking to oust Safeway Chairman Steven Burd. The grocery store chain was involved in a labor dispute with Harrigan's food and commercial workers union. Calpers also opposed Anthem's $16.5 billion acquisition of WellPoint Health Networks, the state's largest health insurer, over executive pay. "With the removal of Harrigan, the question is now whether or not the other 12 members of the board will choose to adhere to the mandate of the state constitution and refrain from politicizing Calpers for their own political ambitions," Karen Hanretty, a spokeswoman for the California Republican Party, said in a prepared statement.chron.com