Stockholders should have more say in companies

Reader comment on: Obama's Financial 'Reform' Speech

Submitted by Lyle (United States), Apr 22, 2010 17:11

As one who lost $44/per share on citi. I say, let stockholders vote on pay (as in the UK) and further allow them to nominate directors not just the inside club that nominates directors now. Companies are really run by management for management and damn the stockholders when they get the chance. If stockholders vote to run the company into the ground is that not their right they are the owners? (Of course the institutional holders could not so vote because it would violate their duty to their investors). Stockholders get the shaft when managment screws up but have no way to fix management because all they can do now is vote no, but not elect a directory of their choice unless willing to go to a very expensive proxy contest. Open the proxy up to nominations by say 3% of the outstanding shares and stockholders will get more of a view of where directors want the company to go as opposed to the soviet style elections corps have today.


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The Future of Capitalism replies:

I actually agree with you here, which may surprise some people, but *only* if it's paired with state pension reform so that the big voters in these elections aren't Calpers and NY State Comptroller, but actual non-government shareholders. Otherwise it's just a recipe for a government-run economy.

Other reader comments on this item

Title By Date
⇒ Stockholders should have more say in companies
[w/response] [170 words]
LyleApr 22, 2010 17:11
But the biggest stockholders are the mutual funds such as Fidelity and Vanguard.
[w/response] [143 words]
LyleApr 23, 2010 00:42
That's a good question. [110 words]LyleApr 23, 2010 22:33

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