The drugmaker is among a very undistinguished group of 11 companies cited by the big California pension for lagging stock performance and bad corporate governance.

“The long term performance of all 11 companies is at least 20 percent behind their peers, and they have resisted appeals to change corporate practices that make their boards unresponsive to shareowner interests,” says Rob Feckner, CalPERS board president. “In several cases, their entrenched boards refuse to discuss our grievances.”

In Lilly’s case, CALPERS says the drugmaker’s stock has seriously trailed the S&P 500 and a peer group index over the last five years. Moreover, shareholders can’t amend bylaws, a provision CALPERS called ‘egregious.’ Lilly also refused to remove supermajority voting requirements and allow special shareholder meetings to be called.

Poor Sid. And he thought the Zyprexa publicity was bad.

To see the pension fund’s complete Focus List, look here.[tags]CALPERS, Corporate Governance, Eli Lilly[/tags]