4 ms·
State Farm is a mutual company. That means that the policyholders (i.e. you) actually own it. https://en.m.wikipedia.org/wiki/State_Farm https://en.m.wikipedi
by 300bps 7y ago
State Farm is a mutual company. That means that the policyholders (i.e. you) actually own it.
https://en.m.wikipedia.org/wiki/State_Farm https://en.m.wikipedia.org/wiki/State_Farm
- freepor 7y agoThat’s like saying we choose the government. It’s true in theory, but in practice the top management uses the “owners” like Soylent Green.
- someguyorother 7y agoIt's a matter of feedback, really. It doesn't matter if a government is selected by the people if the government can control the people more effectively than the people can control the government. If the company holds very infrequent general meetings and the owners can't schedule extra ones, then the managers are going to rule, irrespective of who "formally" governs the company. It's like a people's democratic republic: even if the election is fair, the political bureau sets the rules 99% of the time and the congress of deputies only meets once a year - and soon enough the elections end up no longer being fair.
- parkovski 7y agoAnd accordingly, I could give orders to their lawyers and their likelihood of doing what I say is about the same as the percentage of the company that I own.
- cma 7y agoWhy do the policyholders pay for so much TV advertising to get new policyholders? Increase in volume lowers overheads and spreads the risk pool, but surely not to the extent of the TV spending.
- mooreds 7y agoThe principal agent problem: https://en.m.wikipedia.org/wiki/Principal%E2%80%93agent_problem https://en.m.wikipedia.org/wiki/Principal%E2%80%93agent_prob...