View one letter

New York City Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds and in conjunction with the California Public Employees’ Retirement System (CalPERS), New York State Common Retirement Fund, North Carolina Retirement System and Illinois State Board of Investment, sent letters today to eight companies that have business ties to Iran.

The signatories are calling upon companies to describe measures that they have in place to mitigate risks that could negatively impact the companies’ stock price and reputation. Written responses are requested from the companies by August 31.

Letters were sent to Oil & Natural Gas Ltd. of India, Royal Dutch Shell plc of The Netherlands, Total SA of France, China Petroleum Company of China, Inpex Corporation of Japan, Gazprom OAO of Russia, Respol YPF SA of Spain and Eni S.p.A. of Italy. A letter can be viewed at www.comptroller.nyc.gov.

According to information obtained by the Comptroller’s Office from a research service organization, the companies have significant investments in Iran’s oil and natural gas sector. The signatories collectively own 124,204,882 shares of common stock in the companies, valued at approximately $3,729,096,227.

“Given the growing tension between the United States and Iran -- a country the United States Department of State has designated a ‘state sponsor of terrorism’ -- it is increasingly likely that the worsening situation and tightening economic sanctions will negatively impact companies doing business there,” Thompson wrote. “In addition, historically, regional conflict has exposed facilities and infrastructure to the risk of attack, as evidenced by the Iran-Iraq war of the 1980s.”

Referring to the divestment campaign currently underway in many states across the United States, Thompson wrote: “A campaign lobbying for the enactment of legislation aimed at depriving Iran’s nuclear program of revenues, by requiring public pension funds to divest their holdings in foreign companies doing business in Iran is gaining momentum in many states across the United States.”

Thompson continued:  “As a result of this widespread campaign, public pension funds increasingly are faced with the prospect of having to divest their investments in foreign companies that are doing business in Iran. If some of the bills are passed in their broadest forms, pension funds might be forced to sell nearly $18 billion in affected assets (Pension & Investments, May 31, 2007).”

Further, “tougher economic sanctions could be imposed on Iran because of its continuing defiance of United Nations resolutions relating to its nuclear program,” Thompson wrote. “Given the significant risks that could negatively impact the company’s stock price and reputation, we request that you respond to us in writing, describing the policies and safeguards you have in place to mitigate those risks.”

Thompson is the custodian and investment advisor to the five New York City Pension Funds: New York City Employees’ Retirement System, New York City Teachers’ Retirement System, New York City Police Department Pension Fund, New York City Fire Department Pension Fund and New York City Board of Education Retirement System.

Since taking office, Thompson has taken actions that have resulted in decisions by companies to sever ties with terrorism-sponsoring nations. Those companies are General Electric, ConocoPhillips, Halliburton, Cameron International Corporation (formerly Cooper Cameron), Aon Corporation and Foster Wheeler, Ltd. This past April, Thompson testified today before the United States Senate Trade Subcommittee regarding his efforts to pressure American companies to sever their ties with terrorism-sponsoring nations.

The New York City Pension Fund trustees are:

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; Edward Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

Serving with Thompson on the New York City Employees’ Retirement System board are: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (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, Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

In addition to Thompson, trustees on the Teachers’ Retirement System board are: 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.

The BERS Board of Trustees is comprised of: mayoral appointees Schools Chancellor Joel I. Klein, Alan D. Aviles, Philip A. Berry, David C. Chang, Tino Hernandez, Edison O. Jackson, Richard L. Menschel and Marita Regan; Borough President appointees Luis Peguero (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.

###