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New York City Comptroller William C. Thompson, Jr. today announced that five companies have agreed to review product safety practices as requested in a shareholder proposal he submitted to the companies on behalf of the New York City Pension Funds.

The five companies that agreed to take proactive steps to minimize consumer exposure to toxic and hazardous imported products are: Best Buy of Minneapolis, MN; JC Penny Company of Plano, TX; Mattel, Inc. of El Segundo, CA; Pier 1 Imports of Fort Worth, TX. and Target Corporation of Minneapolis, MN.

The New York City Pension Funds behind the measures are the: New York City Employees’ Retirement System (NYCERS), New York City Teachers’ Retirement System (TRS), New York City Police Department Pension Fund, the New York City Fire Department Pension Fund, and the Board of Education Retirement System (BERS).

“I applaud these companies for taking the necessary steps to review their product safety practices,” Thompson said. “While customer safety is paramount, companies must also take proactive steps towards preventing recalls, which are extremely costly in terms of reputation and bottom lines.”

The resolutions – which can be viewed at www.comptroller.nyc.gov – were filed over the past few months and expected to be presented to the companies’ shareholders for their consideration and vote at upcoming annual meetings. However, the five companies agreed to implement reviews; as the Comptroller has since withdrawn the resolutions.

The companies will publish reports – due by December 31, 2008 - that outline business practices on product safety and explore options for new and improved guidelines. These reports will:

• Summarize attempts by the company to secure its supply chain of goods marketed.
  
  
• Review which, if any, product lines and categories sold may be affected by product safety concerns, and
  
  
• Recommend options for new initiatives or actions management may take to respond to this public policy challenge, beyond those initiatives or actions already required by law.

Thompson and the Funds were spurred into action by the recall of millions of hazardous brand name and supply line products over the past few years.

“As one of this nation’s largest retirement systems, the New York City Pension Funds are leading the charge to improve product safety in this country, and we look forward to hearing from other companies who also are willing to make the same commitment,” Thompson added.

Collectively, the Pension Funds hold more than 3.4 million shares valued at over $136 million in these companies.

The New York City Pension Funds have been at the fore of shareholder activism in pressuring many of America’s largest companies to improve workplace conditions, protect the environment, promote human rights abroad, and adhere to accepted corporate governance standards. Besides Thompson, the Pension Funds’ trustees are:

NYCERS: 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.

TRS: 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.

Police Pension Fund: Mayor Michael Bloomberg; New York City Police Commissioner Raymond Kelly (Chair); New York City Finance Commissioner Martha E. Stark; Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Thomas Drogan, Lieutenants Benevolent Association; and Roy T. Richter, Captains Endowment Association.

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; Michael Currid, Captains’ Rep., John J. McDonnell, Chiefs’ Rep., and Stephen J. Carbone, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

BERS: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Edison O. Jackson, Richard Menschel and Marita Regan; Luis Peguero (Bronx), Patrick Sullivan (Manhattan), Wendy Gilgeous (Brooklyn), and Joan Correale (Staten Island); and employee members Joseph D'Amico of the IUOE Local 891 member and Milagros Rodriguez of District Council 37, Local 372.

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