The largest state pension plan in the US has thrown its support behind measures proposed by the country’s market regulator for shareholders to better engage with companies, just as the minister for London’s financial sector looks at ways of improving the situation on this side of the Atlantic.

The California Public Employees' Retirement System has written to the Securities and Exchange Commission in support of its proposals to more easily allow shareholders to nominate board members and replace existing directors of companies in which they hold significant stakes.