The California State Teachers' Retirement System (CalSTRS) said it will vote against Walt Disney Co's decision to combine the roles of chairman and chief executive and its executive pay plan at the company's annual shareholder meeting in March.
The second-largest U.S. pension fund owns about 5.3 million shares of Disney — a 0.3 percent stake — worth $263 million, and had voiced its opposition last March after Disney said it will elevate CEO Robert Iger to the dual role.
Iger received $40.2 million in total compensation last year, according to regulatory filings.
"Here we go again, sliding back into a governance structure that has already proved detrimental to the company's long-term growth and to its shareholders' interests," said Anne Sheehan, CalSTRS director of corporate governance.
Sheehan said investors have been through this fight before in 2004-2005, leading to the separation of roles and the ouster of then CEO Michael Eisner.
Institutional Shareholder Services and the treasurer for the state of Connecticut has also raised objections to the company's decision.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Joyjeet Das)