Big Labor Goes to Bat in Boardrooms By Amy Borrus, Business Week
Union pension funds, which have $400 billion invested in the capital markets, have occasionally singled out directors for withhold-the-vote drives before. But this is the first time that Big Labor has made a broad push to punish directors it thinks aren't doing their jobs. The AFL-CIO will rally individual union funds and reach out to public pension funds and some mutual-fund companies to try to get them on board, too.
The AFL-CIO is targeting directors who sit on their board's compensation committee. 'Directors need to be held accountable for their judgment when they approve paying excessive amounts of shareholders' money to executives,' says Brandon Rees, a research analyst in the AFL-CIO's Office of Investment.