- Governance and strategic recommendations for Viacom (VIA -1.7%, VIAB -1.9%) are piling up: An investment officer for the California State Teachers' Retirement System is calling on the company to drop its dual-class share structure, and eliminate the non-voting class.
- "Ideally we think there should be a one-share, one-vote capital structure," Aeisha Mastagni told Reuters.
- At $184B, CalSTRS is the second-largest U.S. public pension system, and it holds 1.1M nonvoting shares. Mike McCauley, in a similar pension oversight role for Florida state, also supports a one-share one-vote structure.
- Outside advice for Viacom is gathering strength amid a succession debate around the company's ailing executive chairman, Sumner Redstone. Mario Gabelli, the company's No. 2 shareholder, has called for more information about Redstone's health and has urged the company to sell a stake in Paramount Pictures to Alibaba.
- "This is an example, putting Mr. Redstone aside, where the minority shareholders have no way to hold the board accountable," Mastagni said. "Our view is that if you’re tapping into the public markets, you should have a one-share, one-vote capital structure."
- CalSTRS also supports dropping dual-class structures at Facebook and Comcast.
- Previously: Viacom statement: Redstone physicians say he's 'mentally capable' (Dec. 02 2015)