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John Liu, NYC Comptroller, on why he wants to oust the key directors of Wal-Mart in the wake of the company’s bribery scandal.
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Wal-Mart stock down again today that nearly 6% since -- Mexican bribery allegations first surfaced.
Now pension funds -- very large stakes in the mega retailer of fighting back in California this is -- -- to -- my next guest is trying to put the company's top brass are out on there well.
Well -- -- anyway New York City controller John -- with -- right now control of redundancy thanks Tim -- quite an opening.
You know world for rhyming here on.
You wanna actually go a step further write so a good chunk of the five and have millions here's the city has of Wal-Mart and four point seven million.
To do what.
Yeah well we've got about about a photo of a billion dollars worth of shares in Wal-Mart and it's not we're not looking to sell the shares were looking to.
How's that top key directors who we polled said it -- -- -- -- -- woods right is that right.
We -- long term investors we we don't pick stocks we invest over a hundred billion dollars in New York City pension funds.
Mostly through index funds and so we don't necessarily have the ability to split the exact shares out.
Which is why we're very active in shareholder activism.
And -- promoting resolutions or also in this case holding individual directors accountable for what the company has gone through all right but you.
Are assuming they're guilty I mean.
-- -- -- we have already been through many discussions over many years and this also predates my tenure as controller.
We have in the past had serious concerns.
About charges that Wal-Mart.
Violated child labor laws.
Abused.
Immigrant workers.
-- I understand that but as -- does -- -- messages about whatever they are alleged to have done -- Mexico in order to get a hundred to opened stores there there were bright people but some.
A violation of the -- and direct and of course they.
If there is guilty due to their executives would go to the needs of the slammer but.
In investigation isn't so.
So while we are -- an innocent children don't.
-- what is clear though is that.
The executives at the very highest levels of this companies.
Took actions.
To -- up.
What may or may not have happened in Mexico.
They -- and and also just took steps to shut down.
It -- totally independent investigation.
-- what had happened in the past.
And so well the bribe.
Are they -- case -- -- And I'm gonna vote tomorrow when I don't I understand -- health care whenever our own.
They did that they didn't do that and there were no such you know deliberate shutdowns of investigations on their part are outside part.
Up so that you are or jumping.
The gun.
-- -- -- That we do have.
Some indications that in fact they did try to shut down the independent investigations.
There was a failure on the part of the audit committee which is supposed to have some semblance of independence for sort of support -- you've heard enough to senator should.
That's correct and on June 1 we will vote our shares against these -- his sentencing.
Hundred and -- view is you know.
You rule bedroom -- your campaign has been -- with.
Jenny you know your former.
Fund raiser you would stood by -- amid reports and charges that -- Was -- misappropriating funds or doing something weird in that regard you stood by her.
Many -- campaign -- stood by her.
So obviously she is kind of innocent until proven guilty and I continue to stand by her and I'm very proud of the way that we've done.
Ron -- how would you feel if someone said while here in this area never welcome her back she is dead meat.
Shouldn't welcome her back period.
In this case -- It's obvious that without nearly a billet of sort of a billion dollars.
At stake in Wal-Mart for the city's pension funds.
No shares have already taken a tumble and say it just -- they are it looks where they are incredibly.
Can stay annual stand by her.
-- you want to -- she's affront to keep Stamford stand better -- scene where this investigation goes.
Wal-Mart investigation is and in done Tata simulator.
-- as I said before there are some clear indications that.
The Wal-Mart directors that we are talking on June 1.
Have backed it eight cents a share against -- target on this it was you don't have the same zeal going into Chesapeake Energy.
Be considerably and this is the city -- only about 1 and -- million shares ran.
But -- seven million dollars were OK now they've been downgraded well as a junk territory.
They're they're losing money hand over -- the stock is down 21% this year on fears -- -- its investors are getting deeper in debt deeper in trouble.
No way out.
Not a -- For more than a year and a half we've been going after the Chesapeake board to it to a push for more independent director to address -- -- the board.
And some of the director thing that you want right.
I'm he's still -- -- -- there's still falling knife they don't get nearly the risk that Wal-Mart does not mean we've.
I'll hold on a second -- I I think.
You may not be totally up to speed on what we're doing with Chesapeake we are very concerned about we still -- every share anticipate as I said before it's hard for us as -- hundred billion dollar plus pensions run to -- his best from any specific company.
But you're saying that -- letting them off the hook -- not living just pick off the hook at all they've got a shareholder meeting coming up.
I think it's the eighth of June or something like that we've got 27 million dollars in that come.
And in what does that mean if you can't just dislodge the stock like you can't in this case you say and you can't wal mart's case.
-- to make a statement demanding company executives.
No.
What do you or try to indicate there or try to in the case of Chesapeake.
A vote in our independent directors or at least put them on the ballot.
It you know -- you can say that it as a practical matter a pension fund the size of ours or like other public pension funds across country it's hard to divest.
No doubt it's -- sitting here is I'll use you own -- -- -- -- every premier name but -- you General Electric hasn't made me any.
