CalPERS Votes for Auditing Independence

May 24, 2002 ( - The nation's largest pension fund is taking a stand in the battle for auditor independence.

The California Public Employees’ Retirement System (CalPERS) will vote against paying accounting firms to provide both auditing and consulting services at the many companies included in its investment portfolio.

These companies include:

  • Exxon Mobil
  • Home Depot
  • McDonalds

According to the CalPERS Web site, the giant pension fund will vote its stakes in the companies against ratifying their choices for auditor.

CalPERS will also cast its votes against directors who are also members of audit committees that have voted in favor of paying for consulting services from the same firm that does its audit.
According to CalPERS, reform proposals put forward by the accounting industry are “too narrow.” The fund has called for companies to work towards auditing independence.