View letter to Foster Wheeler

Comptroller William C. Thompson, Jr. announced today that the New York City Pension Funds are withdrawing a shareholder resolution filed with Foster Wheeler Ltd. after the company agreed to sever ties with Iran , the City's sixth successful action aimed to severing connections with terrorist-sponsoring nations.

“We contended that Foster Wheeler's business dealings in Iran could have exposed the Company to negative publicity, public protests, and a loss of investor confidence, all of which could have had a negative effect on shareholder value,” Comptroller Thompson said. “This is not just an economic concern but a moral one. Investors have a right to know whether they are in any way supporting terrorism.”

The New York City Employees' Retirement System, New York City Police Department Pension Fund, New York City Fire Department Pension Fund, New York City Teachers' Retirement System and New York City Board of Education Retirement System recently filed a shareholder resolution with Foster Wheeler, asking the company to assess and report on its subsidiaries' business ties to Iran .

The resolution – which was withdrawn today - followed a letter that the Comptroller had written more than a year ago to the engineering and construction company, requesting that officials establish a committee of its Board of Directors to review those ties with particular attention to potential financial and reputational risks. Foster Wheeler initially responded that it was in compliance with U.S. law.

However, Foster Wheeler indicated to Thompson's Office this month that it enacted the change after receiving Thompson's letter and that currently “its non-U.S. subsidiaries will not engage in any new business with countries that are embargoes or otherwise heavily sanctioned by the United States .” Foster Wheeler noted that the company “has actually gone further” than Thompson's request and “has adopted a uniform worldwide policy concerning this issue.”

In its decision to target Foster Wheeler, the City cited research made available to the Comptroller by the Conflict Securities Advisory Group of Washington , D.C. That research stated that Foster Wheeler's UK subsidiary, Foster Wheeler Energy Limited, is involved in a number of construction and engineering projects in Iran . That research also mentioned that Foster Wheeler Italiana worked as a subcontractor on phases two and three of Iran 's South Pars gas project.

The Funds have more than 3,485 shares worth more than $128,800 in Foster Wheeler.

Over the last three years, the Comptroller and the Funds have successfully urged five other companies to sever current and/or future ties with rogue nations. Earlier this year, Aon of Chicago, IL, General Electric or Fairfield , CT , and the Cooper Cameron Corporation of Houston , TX , agreed to sever ties with Iran , and Halliburton notified the Comptroller that it would not seek any new business with Iran .

Previously, as a result of the Funds' efforts, ConocoPhillips in 2003 agreed to “regularly review operations in sensitive countries” and “comply with the letter and the spirit of all U.S. Government restrictions on business activities” in those regions.

Besides Thompson, the trustees of the City's Pension Funds are:

New York City Fire Department Pension Fund: 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.

New York City Police Pension Fund: 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.

New York City Employees' Retirement System: 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.

New York City Teachers' Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

Board of Education Retirement System: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Augusta Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (Bronx), Martine G. Guerrier (Brooklyn), Vivian Farmery (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 Milagros Rodriguez of District Council 37, Local 372.

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