US pension fund to oppose Walmart directors Calstrs, the second-largest US public pension fund, will vote against the re-election of Walmart's directors at the retailer's shareholder meeting next week as allegations of bribery in Mexico hang over the company. The pension fund, which manages money for California teachers, said it would vote against the entire board as it alleged that current and former Walmart leaders had not reacted to signs of "unethical conduct" and that the board lacked independence. Allegations that Walmart paid bribes to secure store permits in Mexico and covered up the practice have triggered investigations by the US Department of Justice, the Securities and Exchange Commission and the Mexican government. Calstrs" announcement came after two influential proxy advisory groups, Institutional Shareholder Services and Glass Lewis, recommended that Walmart investors vote against certain board members, including chief executive Mike Duke and his predecessor Lee Scott, but not all. Jack Ehnes, Calstrs chief executive, said on Tuesday that Walmart executives and directors had "breached their fiduciary responsibilities" by "failing to respond to indications of a pattern of unethical conduct in the company's foreign operations." "Calstrs believes that in some cases, Walmart leadership actively suppressed an internal investigation which would have brought these improper actions to light," he said. A group of New York City public pension funds also plans to vote against five Walmart directors. John Liu, the city's comptroller, said in a letter to other investors this week: "Although the directors" re-election is assured given that the Walton family and other insiders control a majority of shares, outside shareowners like us can deliver a strong message about the need to restore credibility to Walmart's boardroom." The family of Walmart's founder Sam Walton own nearly 50 per cent of shares in the company. Walmart stock on Tuesday ended at $63.73, its highest close in more than a decade, having rallied 7 per cent since it reported quarterly results last week that beat market expectations. Calstrs owns 5.3m Walmart shares, less than 0.2 per cent of the total. Glass Lewis recommended that investors vote against seven of Walmart's 16 board members, including Mr Scott, who was chief executive at the time of the alleged bribery, and Mr Duke, who was head of its international business for part of the time. ISS recommended voting against those two and two others, including Robson Walton, Walmart's chairman and son of its founder. In a proxy statement filed in April, Walmart recommended that shareholders vote for its 15 existing board members as well as Marissa Mayer, a Google executive standing for election for the first time. Walmart has launched an internal investigation into the allegations. Last week Mr Duke said "acting with integrity is the essence of our corporate culture" and "we will take appropriate action if violations of the law or our policies occurred."