From: John Chevedden [jrcheve@earthlink.net] Sent: Friday, June 13, 2003 12:23 PM To: rule-comments@sec.gov Subject: S7-10-03 I support greater shareholder access to the company ballot. The potential of material shareholder access to the company ballot will encourage incumbent directors to be more careful in their attention to shareholder value. For example, in reference to this news item today, had El Paso dissidents had greater shareholder access to the company ballot they could have had a positive influence on the company before the stock lost 90% of its value. John Chevedden Proponent of Rule 14a-8 Proposals which have won majority votes. El Paso dissidents score again By Lisa Sanders, CBS.MarketWatch.com Last Update: 5:20 PM ET June 12, 2003 DALLAS (CBS.MW) -- The shareholder group seeking to oust El Paso Corp.'s board and management scored another victory Thursday with key endorsements. The New York state Common Retirement Fund and the Illinois Board of Investment voiced their support for the group of candidates nominated by shareholder Selim Zilkha, who is battling to oust El Paso's board. "This board's mismanagement virtually destroyed the firm's value and reflects a troubling disregard for shareholder concerns," said Alan Hevesi, sole trustee of the 945,000-member New York state retirement fund, in a statement. "The directors must be held accountable for their sloppy performance." Zilkha, Houston-based El Paso's (EP: news, chart, profile) largest individual shareholder, launched a proxy fight on Feb. 18, seeking to replace the board with one of his own design. He has railed against the board for a 90 percent decline in the stock price and said the directors lack the energy industry experience to turn El Paso around. See more in Due Diligence. Last week, Institutional Shareholders Service recommended that El Paso shareholders vote for the dissident slate of directors backed by Zilkha. Brandes Investment Partners has rallied behind El Paso's incumbent board. "We are working very hard to meet with our shareholders to go over our accomplishments, and we've met with a very positive response," said El Paso spokeswoman Norma Dunn on Thursday. "We have a strong business plan to move the company forward and the right people to implement it." El Paso will hold its annual shareholder meeting Tuesday in Houston. Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com. ------------------------------------------------------------------------- From: John Chevedden [jrcheve@earthlink.net] Sent: Friday, June 13, 2003 12:45 PM To: rule-comments@sec.gov Subject: S7-10-03 The fact that many companies routinely ignore majority shareholder votes on shareholder proposals for improved governance is an additional reason to give shareholders material access to the company ballot for director nominees. John Chevedden ------------------------------------------------------------------------- From: John Chevedden [jrcheve@earthlink.net] Sent: Friday, June 13, 2003 1:02 PM To: rule-comments@sec.gov Subject: S7-10-03 Allowing shareholder-nominated, non-incumbent candidates to run for election on the company ballot would introduce a fresh perspective to the board and encourage increased responsiveness and accountability to shareholders. Shareholders should be able to protect their investments by intervening and effecting real change where it matters most ­ at the board level ­ rather than watching helplessly as a company fails. John Chevedden -------------------------------------------------------------------------- From: John Chevedden [jrcheve@earthlink.net] Sent: Friday, June 13, 2003 1:33 PM To: rule-comments@sec.gov Subject: S7-10-03 Shareholder access to the company ballot for director nominations would encourager boards to be more responsive to shareholders and other key constituencies. An open process would influence independent directors to be more responsive on an ongoing basis and to consult with key shareholder constituencies in shaping the management slate. By facilitating fair elections, adopting greater access to the company ballot may cut down on the need for contested elections due to a responding increase in the caliber of company candidates. John Chevedden