Qwest Communications International Inc., the fourth-biggest U.S. local-telephone company by sales, should separate the roles of chief executive officer and chairman, proxy adviser Institutional Shareholder Services said Thursday.
ISS, the largest adviser to money managers on proxy votes, recommends its clients back a proposal asking Denver-based Qwest to separate the functions, according to ISS spokeswoman Cheryl Gustitus. The California State Teachers' Retirement System on May 7 said it was trying to win support for the plan.
CalSTRS, which holds 4.7 million Qwest shares among $116 billion under management, says having the same person as chief executive and chairman of the board may inhibit directors from unbiased management oversight. CalSTRS, the third-largest U.S. public pension fund, says Qwest should appoint a chairman with no ties to the company.
"Qwest's board strongly endorses the view that one of its primary functions is to protect stockholders' interests by providing independent oversight of management, including the CEO," said Qwest spokesman Steve Hammack in a statement sent via e-mail. "The Board does not believe that mandating a separation of the positions of Chairman and CEO is either necessary or desirable to achieve effective oversight."