Calpers Chief Is Voted Out
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SACRAMENTO, Calif. – The nation’s largest public pension fund fired its president yesterday following a tumultuous year in which he became an outspoken advocate for reform in the board rooms of corporate America.
In a 3-2 vote, the state Personnel Board pulled Sean Harrigan from his post at the $177 billion California Public Employees Retirement System, a major player in the investing world. Mr. Harrigan was elected as Calpers board president in February 2003.
Mr. Harrigan said he was “saddened” to end his involvement in “restoring much needed integrity and accountability to our capital markets.” His supporters alleged corporate pressure and Republican lobbying, including from Governor Schwarzenegger, helped drive the move.
State Treasurer Phil Angelides, a Harrigan ally on the CalPERS board, criticized Mr. Schwarzenegger and the personnel board for siding with “corporate interests and against taxpayers, pension fund members and ordinary American investors.” One of the board members who voted against Mr. Harrigan was appointed by Mr. Schwarzenegger.
Mr. Harrigan will be replaced by Ron Alvarado, whose background is more aligned with the private business sector.
After the vote, Personnel Board member Maeley Tom released a statement saying there was no “conspiracy, secret agenda or motive,” but a belief that other board members should also have a chance to join the CalPERS board. She said Mr. Alvarado’s seniority put him next in line.
Mr. Harrigan’s statement made no mention of corporate foes. But his actions, such as witholding votes from board members of 2,400 companies, have angered segments of the nation’s business establishment, including Disney and the U.S. Chamber of Commerce.