Thompson plans to target three more companies in addition to Halliburton and General Electric

View letter to Aon
View letter to Cooper Cameron
View letter to Foster Wheeler

New York City Comptroller William C. Thompson, Jr. today vowed to expand his efforts on behalf of the City’s Pension Funds to urge several U.S. firms, including the Halliburton Company, to thoroughly review their foreign and offshore subsidiaries’ connections with rogue nations.

This Fall, Thompson will urge trustees of the New York City Police and Fire Department Pension Funds to resubmit shareholder proposals with the Halliburton Company and General Electric. He also will seek approval from trustees to submit first-time proposals with the Aon Corporation of Chicago, Foster Wheeler Ltd. of Clinton, N.J., and Cooper Cameron Corporation of Houston, Texas.

In July, Thompson wrote to Aon, Foster Wheeler and Cooper Cameron and asked each to establish a committee of their Board of Directors to review their business ties to Iran, with particular attention to potential financial and reputational risks.

“ U.S. law currently restricts trade and investment activity by American companies with countries that are designated by the U.S. State Department as sponsors of terrorism,” Thompson wrote. “While the sanction does not apply to the foreign or off-shore subsidiaries of U.S. corporations, so long as the U.S. parent companies are neither directly nor indirectly involved, we believe that American companies should nonetheless adhere to the spirit as well as the letter of the law.”

As shareholders, he said, “we are concerned that [each] Company’s business dealings in Iran could expose the Company to negative publicity, public protests, and a loss of investor confidence, all of which could have a negative effect on shareholder value.”

Foster Wheeler and Aon wrote back, contending they are complying with U.S. law (Cooper Cameron has not responded.). The Comptroller maintains that the companies failed to thoroughly review the potential risks entailed by their foreign and off-shore subsidiaries’ relationships with Iran. If approved by the Funds, Thompson will submit the proposals later this year.

“Many of our fire officers gave their lives protecting New Yorkers from terrorism, and the continuing threat of terrorism puts our fire officers at risk every day,” said Peter Gorman, president of the New York City Uniformed Fire Officers Association and a member of the Fire Pension Fund. “Our officers' pension funds should not be invested in companies doing business with terror-linked nations. We applaud all companies that cease and desist from this practice and believe others should follow suit.”

The City’s Pension Funds have 997,575 shares worth more than $25 million in Aon, 69,700 shares worth more than $47,000 in Foster Wheeler, and 1,938,672 shares worth more than $52 million in Cooper Cameron.

Additionally, Thompson plans to resubmit shareholder proposals with Halliburton and G.E. The Halliburton proposal followed reports that Halliburton opened an office in Iran under the name Halliburton Products and Services Ltd., its Cayman Islands subsidiary, in February 2000. Last year, in response to pressure from the Funds, Halliburton promised to designate a committee of its Board of Directors to review its operations and submit a report on those risks. However, contrary to that agreement, Halliburton's report failed to fully address the concerns.

Thompson subsequently filed the proposal in December, citing Halliburton for failing to comply with its agreement to provide the Funds with a report detailing the potential financial and reputational risks of its Iranian operations. The measure went before shareholders at the company’s annual meeting in May, and 22 million shares – 7.4 percent of the total cast - were voted in its favor. That was more than double the percent needed to allow the City to resubmit the proposal.

The Funds have roughly 1,457,000 shares worth about $42 million in Halliburton.

Thompson also will target G.E., which conducts business operations with the Iranian government through its Canadian subsidiary, General Electric Hydro. The Funds’ first proposal received more than $5 billion worth of shareholder votes, allowing the measure to be resubmitted. The Funds have roughly 33,220,000 shares worth close to $1.1 million.

Besides Thompson, trustees on the New York City Fire Department Pension Fund are: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; Peter Gorman, President and Captains’ Rep.,Nicholas J. Visconti, Chiefs’ Rep., and Stephen J. Carbone, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

In addition to Thompson, trustees on the New York City Police Pension Fund are: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

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