“Reforming Retirement Plans”
Forbes.com, September 22, 2004
Joseph Adams was quoted in regard to a new report from the Government Accountability Office (GAO) that details conflicts of interest that can arise when a company's pension plans casts proxy votes for company stock held in the plan and recommends certain new measures designed to curb such conflicts. Although Joe indicated that the GAO recommendations are unlikely to be implemented anytime soon, Mr. Adams recommended that companies think about the report as part of a much larger debate about the risks associated with holding company stock held in pension plans. "Companies should be thinking about how to manage fiduciary risk, so the company's officers and directors don't get dragged into an ERISA lawsuit every time the company stock hiccups," Mr. Adams said.