Four of the nations largest public pension funds are going after the board of directors of Putnam Investments parent company Marsh & McLennan Companies for its "failure to properly control its money management business and for its severe lack of independent board leadership," the funds announced in a joint statement on Monday.
Sean Harrigan, President of CalPERS said the problems at Putnam and MMC are "so severe they are Enron-esque."
"Marsh & McLennan deserves to be the first company in U.S. history to face a binding proxy access proposal because of its gross failure to have proper controls that could have prevented the Putnam disaster," said Gerald W. McEntee, AFSCME Employees Pension Plan Chairman, in a statement.
"It is tragic that the board at Marsh & McLennan lacked the independence needed, and today continues to be influenced more by its insiders than the needs of its shareholders. There is no question that shareholders will support the idea of electing a truly independent director to the board if given the opportunity through our shareholder resolution."
Recently, CalPERS and CalSTRS announced that they had each fired Putnam as their money manager. AFSCME said it has not employed Putnam.