This excerpt taken from the UNH DEF 14A filed Apr 30, 2007.
(a) have beneficially owned 3% or more of the corporations outstanding common stock (Required Shares) continuously for at least two years;
(b) provide written notice received by the Secretary within the time period specified in the first paragraph of this section containing (i) with respect to the nominee, (A) the information required by such section and (B) such nominees consent to being named in the proxy statement and to serving as a director if elected; and (ii) with respect to the Nominator, proof of ownership of the Required Shares; and
(c) execute an undertaking that it agrees to (i) assume all liability stemming from any legal or regulatory violation arising out of the Nominators communications with the corporations shareholders, including, without limitation, the Disclosure and Statement; (ii) to the extent it uses soliciting material other than the corporations proxy materials, comply with all applicable laws and regulations, including, without limitation, the SECs Rule 14a-12.
The Nominator may furnish a statement, not to exceed 500 words, in support of the nominees candidacy (the Statement) at the time the Disclosure is submitted. The Board of Directors shall adopt a procedure for timely resolving disputes over whether notice of a nomination was timely given and whether the Disclosure and Statement comply with this section 3.17 and any applicable SEC rules.
The proponent has furnished the following statement:
As an indication of the extent of the compensation problems at many public corporations, President George W. Bush recently said he was floored when he sees guys making a billion dollars as a CEO of a company. President Bush also stated that he hopes that shareholders should take a good hard look at some of these companies.
The Wilmer Cutler Report exposed many compensation-related problems at the Company including inadequate internal controls, a lack of disclosure regarding financial relationships between the former CEO and the Chairman of the Compensation Committee, the improper repricing of options and the improper backdating of options. For these reasons, CalPERS is sponsoring this proposal that will allow shareowners a meaningful voice in the election of the Board of Directors who set the compensation of the Companys officers.