CalPERS Shifts Tenet Support

October 5, 2000 ( - The management of Tenet Healthcare has made new commitments on corporate governance to the California Public Employees Retirement System (CalPERS), and the nation's largest public pension fund will move its support to the management slate of directors from a dissident slate at next week's meeting.

Tenet Healthcare has committed to create “a Governance Committee to study the appropriateness of a classified board and other related governance issues, and will provide a comprehensive report to its shareholders.”

The commitment comes in addition to those made earlier this week to shareholder advisory Institutional Shareholder Services (ISS). Tenet told ISS that it would:

  • add two independent directors to its board within the next twelve months
  • seek the necessary changes to provide that any future poison pill be submitted to the shareholders for approval
  • reduce the CEO’s participation in the Nominating Committee to an ex-officio (non-voting) capacity
  • review the appropriateness of its staggered board.

CalPERS said that “in recognition of [Tenet’s] commitment to significant governance reforms’ it would support the management slate at the company’s annual meeting next week.

CalPERS holds less than 1% of the Tenet shares outstanding.

– Nevin Adams          

For additional information – CalPERS, AFSCME Disagree on Tenet Approach