Silencing the Voice of Activist Investors

Today, the NYT describes a trend in state legislatures to roll over defined benefit pension plans into a version of 401(k).  401(k) funds (because of Taft-Hartley?) are decidedly not-activist.  They are even accused of "apathy" by certain defenders of director primacy when challenged by opponents who decry the lack of "democracy" in corporate governance.

The biggest player? CALPERS.  Who made news last week by forcing Apple into majority voting, and who is now under attack by the Juggernator:

California’s problems are so acute that just last week a government-appointed commission of experts urged the state to consider at least a partial switch to 401(k) plans; six years ago, an effort by Arnold Schwarzenegger, then governor, to move new employees into such plans was blocked by local governments and public-employee unions.

Making everyone roll their pension fund into a 401(k) will kill CALPERS.  Which is exactly what industry wants.