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 firstname.lastname@example.org
For additional information – CalPERS, AFSCME Disagree on Tenet Approach