Cal. Treasurer Targets Firms Heading Offshore

July 26, 2002 ( - California Treasurer Phil Angelides, who sits on the boards of two of the largest pension funds in the nation, wants to pull state money out of companies that leave the US for offshore tax havens.

Angelides has proposed a blacklist of 23 companies that have undertaken such moves to avoid taxes – a list that could add up to $752 million of holdings for the California funds, according to the Associated Press. 

Shareholder groups have recently challenged such moves, claiming they weaken shareholder rights (see Connecticut Treasurer, AG Challenge Stanley Works – Again ) and make it harder to sue. 

Push for CalPERS, CalSTRS Vote

Angelides, who sits on the boards of both the $150 billion California Public Employees Retirement System (CalPERS) and the $100 billion California State Teachers Retirement Fund (CalSTRS), says he will ask both boards to vote on his proposal, according to the report.

More immediately, Angelides said his office would no longer invest in “expatriate” corporations and removed Ingersoll-Rand from the list of approved companies for the state’s $42 billion pooled investment account. That firm recently reincorporated in Bermuda, though its US offices are still in New Jersey.