View the Auditor Resolution

Comptroller William C. Thompson, Jr., on behalf of New York City Pension Funds , submitted a resolution to Linens ‘N Things, Inc. and Rite Aid Corporation, asking their Boards of Directors to adopt a policy that the appointment of the companies’ independent auditors shall be presented for shareholder ratification or rejection at annual meetings.

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

“Shareholder ratification of the appointment of a company’s independent auditor is advisable and in the best interests of shareholders,” Thompson said. “ Corporate scandals in recent years have resulted in the loss of billions of dollars to investors and the erosion of public trust in the stock markets and in the boards of major companies . This reform measure would help to ensure that the external auditor is truly independent—an essential ingredient for restoring investor confidence and trust in the financial reports of publicly traded companies.”

The resolutions, which seek to improve the accuracy and reliability of corporate financial disclosures and help restore public trust and investor confidence, were prompted by the past fiscal performances of Linens ‘N Things of Clifton, NJ, and Rite Aid of Camp Hill, PA.

If adopted, Linens ‘N Things and Rite Aid will join a number of companies that have sought to establish practices to effectively carry out their responsibility under law. Many public companies now submit the appointment of independent auditors to shareholder ratification. An April 2003 Deloitte & Touche survey of the wealthiest 89 Fortune companies in the United States found that a majority of the companies planned to submit the 2003 auditor selection to shareholder ratification.

The Pension Funds have 133,340 shares valued at $3,546,844 in Linens ‘N Things and 1,410,907 shares valued at $4,895,847.29 in Rite Aid.

Besides Thompson, the Pension Funds trustees are:

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; 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.

Police Pension Fund: 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; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

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, Carroll (Carl) Haynes, 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.

BERS: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Augusta Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (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.

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