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|Subject: Re: Proxy Question||Date: 3/26/2012 12:28 PM|
|Author: TMFCogitarius||Number: 46520 of 46854|
Paul: 'But not to worry, few of these votes ever pass.'
Actually, minority shareholders' views are beginning to have an impact, as I posted here:
''Thanks to a “say on pay” clause in last year’s Dodd-Frank financial-reform law, the pay of every senior executive of an American public company is now subject to a shareholder vote. So far in this spring’s corporate annual-meeting season, the management has lost such votes at four firms, the most prominent being Hewlett-Packard, a computing giant.'
''Occidental Petroleum, one of three firms that were defeated in the far smaller number of “say on pay” votes held last year, is rumoured to be working on big changes in its pay policies, following criticism of the bounty enjoyed by its chief executive, Ray Irani. '
'Disney, for example, issued a new proxy form (the document describing what shareholders will vote on) that cut the size of its bosses’ golden parachutes, after investors’ grumbles.'
More recently, J&J's Weldon ceded his CEO title after getting a noticeable thumbs down from shareholders.
'If you question the judgement of the board of directors, it's usually best to sell and buy something with better management.'
Only if the business' fundamentals aren't worth the effort of voting for change. If we believe in its long term prospects, shouldn't we at least try to effect change by exercising our votes?
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