The pension fund fueled by Norway's oil revenue is set to oppose
global power company AES Corp. on four corporate-governance
proposals--and a fund spokeswoman says more such announcements are
likely as annual-meeting season gets under way.
Norges Bank Investment Management said it will support a
shareholder proposal to let big shareholders list competing board
candidates on AES's official corporate ballots, as well as a
proposal to let holders of at least 20% of the company's shares
call a special shareholder's meeting. It will oppose similar
management proposals that it calls too limited.
The "proxy access" proposal furthers a movement that has gained
steam as companies from General Electric to Citigroup to Yum Brands
have granted the power to shareholders. Long opposed by companies,
it could open the way to more fights over board seats at a time
when activist investors are already rattling even large
companies.
The proposal backed by Norges at AES would allow proxy access
for shareholders controlling at least 3% of the company's
outstanding stock for at least three years. They would be allowed
to field candidates for up to 20% of the board.
The unit of Norway's central bank manages the country's
Government Pension Fund Global, with a market value of nearly 7
trillion Norwegian krone ($888 billion). As of Dec. 31, it held
$46.5 million of AES stock, or nearly 0.5% of the company.
AES couldn't be reached for comment Tuesday afternoon. The
company's annual meeting is scheduled for Thursday morning.
AES management's proposals would allow investors holding at
least 25% of shares to call a special meeting and would grant proxy
access to investors holding at least 5% of its shares for at least
three years.
AES, with a market value of about $9.2 billion, controls
utilities in the U.S., Latin American, Europe and Asia.
Norges Bank spokeswoman Marthe Skaar said companies can expect
additional, similar announcements on significant corporate
governance proposals in coming weeks.
Write to Theo Francis at theo.francis@wsj.com
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