EXECUTIVE CHANGES: VIAULT BECOMES SAFEWAY BOARD MEMBER...HARRIGAN LEAVES CALPERS

VIAULT BECOMES SAFEWAY BOARD MEMBER

ere said it has named Raymond Viault, former vice chairman of General Mills, to its board of directors. Viault will succeed Hector Ley Lopez, effective Dec. 15. The appointment of Viault completes a board makeover that was prompted earlier this year by shareholders who wanted directors with fewer ties to the company. Previously, Safeway had replaced two other directors with close company ties with two independent directors. Viault retired from General Mills earlier this year.

HARRIGAN LEAVES CALPERS

SACRAMENTO, Calif. -- The California Personnel Board here voted last week to remove Sean Harrigan, a union official and outspoken advocate for corporate governance reform, as president of the California Public Employees Retirement System, the nation's largest public pension fund. Harrigan, who was named president of CalPERS in February 2003, was instrumental in throwing his agency's support behind union workers in the 141-day Southern California labor dispute, and in joining with other public pension funds in trying to force Steve Burd to resign as chairman and chief executive officer of Safeway. Harrigan's ouster, which becomes effective Jan. 1, was hailed by business groups as one step in reining in efforts to make corporations more transparent and accountable in their dealings. However, local sources maintain that CalPERS, which administers a $177-billion fund, would continue to be active in corporate reform, including efforts to curb what it considers excessive pay for underperforming CEOs.