NEWS: Calpers Head Will Be Forced Out?

Along the way, Harrigan received admiring praise from shareholder groups and occasional complaints that the California Public Employees' Retirement System (Calpers) had gone too far.



Harrigan was fiercely opposed by business groups and California Republicans who said his background as an official of the United Food and Commercial Workers Union clouded his judgment as Calpers president, especially during the pension fund's campaign to oust Safeway chief executive Steven A. Burd. The campaign took place as Safeway was battling union officials over labor issues. Burd won 83 percent support from Safeway shareholders.



In a prepared statement yesterday, Harrigan acknowledged that he probably would not receive enough votes from a state panel to return to the Calpers board next year. "Corporate governance opponents are trying to silence the voice of Calpers, which has always stood for shareowners' interests against corporate greed," he said.

A spokesman for Schwarzenegger, Vince Sollitto, called the accusations "paranoid musings" and said the governor had exerted no influence on the personnel board vote. "The representative to Calpers from the State Personnel Board is elected by the five personnel board members. This governor has appointed one of them," Sollitto said. "You do the math."



Nonetheless, California business groups and the state Republican Party have been highly critical of Harrigan. State Republican Party spokeswoman Karen Hanretty said yesterday that Harrigan's removal would be a "step in the right direction" and accused him of "favoring and actually doing the bidding" of organized labor. "At the end of business on Wednesday, Sean Harrigan will be wishing he got the same vote of confidence that Steven Burd did," she said.