Cincinnati Financial Expands Board

Cincinnati Financial Expands Board

By Mark E. Ruquet

NU Online News Service, Aug. 20, 2:15 p.m. EST?An insurer listed on the California Public Employees Retirement System's "Focus List" of companies with poorly run governance has announced the expansion of its board of directors to 16.

Cincinnati Financial Corp. announced in a statement that the decision was made during a meeting of its board of directors on Aug. 16 to expand the board to 16 members, from 15.

Gretchen W. Price was named to serve as a new member of the board.

The Cincinnati-based insurer said Ms. Price is vice president, finance and accounting, global market development organization, for The Procter & Gamble Company.

She is a certified internal auditor and was a member of the Chapter Board of Governors for the Institute of Internal Auditors and the Financial Executives Institute, the company said.

Cincinnati Financial was the subject of a story on corporate governance in the National Underwriter's Financial & Investment Review (NU, July 22, page 10).

The Sacramento, Calif.-based CalPERS, after listing the insurer on its "Focus List," pushed for a stockholders' vote to change the structure of the board of directors.

The fund sought to have all board members free of any connection with the company?six of the board members are independent agents with ties to the company.

Management and board members denied any conflict in their consideration of company business. The company said it was open to discussion with stockholders and CalPERS over any concerns.

Stockholders agreed, defeating the proposal in April with 75 percent of the shareholders voting against the CalPERS initiative.