New York City Comptroller William C. Thompson, Jr., on behalf of the City's Pension Funds, announced efforts to urge five U.S. firms to thoroughly review their foreign and offshore subsidiaries' connections with rogue nations.

The New York City Police Pension Fund, Fire Department Pension Fund, New York City Employees' Retirement System, Teachers' Retirement System and Board of Education Retirement System have submitted proposals to the Aon Corporation of Chicago, Cooper Cameron Corporation of Houston , Texas , and General Electric of Fairfield, Conn.

Additionally, the Fire Department Pension Fund, Police Pension Fund and Board of Education Retirement System submitted a proposal to the Halliburton Company. This is the second time the City's funds have submitted the proposal to Halliburton.

Over the summer, Thompson wrote to Aon, Foster Wheeler and Cooper Cameron, asking 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. All three companies wrote back, contending they are complying with U.S. law.

" 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."

The City's Pension Funds have 997,575 shares worth more than $25 million in Aon and 1,938,672 shares worth more than $52 million in Cooper Cameron.

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 last December, noting that Halliburton failed to comply with its agreement to produce 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 1,457,000 Halliburton shares worth $42 million.

This also is the second G.E. proposal. G.E. 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 billion.

Further, the Comptroller, on behalf of all five funds, will present a proposal at the annual meeting of a fifth company, Foster Wheeler Ltd. of Clinton , N.J. , next year. The funds own 69,700 shares worth more than $47,000 in Foster Wheeler.

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.

Serving with Thompson on the NYCERS board are: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents C. Virginia Fields (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

In addition to Thompson, trustees on the TRS board are: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; Phillip Berry, New York City Department of Education's Panel for Educational Policy; and, Sandra March, Melvyn Aaronson and Mona Romain, of the United Federation of Teachers.

The BERS Board of Trustees is comprised of: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Phillip Berry, David Chang, Tino Hernandez, Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (Bronx), Martine Guerrier (Brooklyn), Jacquelyn Kamin (Manhattan), Michael Flowers (Queens), and Joan Correale (Staten Island); and employee members Thomas J. Malanga of the International Union of Operating Engineers, Local 891, and Rebecca Marston of District Council 37, Local 372.

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