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Developer's Corner / Re: "competitive upgrade" - is it ethical?
« Last post by 40hz on January 13, 2011, 03:09 PM »
Wherever in the world if a director doesn't do all they can to maximize profits for shareholders they are in a breach of trust situation between themselves and the shareholders and will probably be voted off at the next shareholder meeting.-Carol Haynes (January 13, 2011, 02:49 PM)
@Carol- Agree on all your points except for the above as it relates to what goes on in the States.
Over here shareholders have virtually no real say in the composition of the board of directors. Most shareholders mindlessly proxy their votes over to the board, or vote the slate whenever it's presented. And that's assuming they even read what they receive. Part of the problem is that large chunks of voting stock are held by mutual funds and other investment companies. So while it may be possible to mount a proxy battle, in practice it's extremely difficult to assemble enough small share votes to do anything. It usually takes something just short of major civil disobedience at a shareholder's meeting to get somebody sacked. Most times, the person in the crosshair negotiates his/her "resignation" (complete with heavy bonus and buyout package) to "spare the firm" the "expense and inconvenience" of a prolonged proxy struggle.
"So it goes" -Kurt Vonnegut


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