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Not to nitpick, but since we're on the topic of corporate governance... Hopefully this will make it a bit more clear on why the governance issues are so murky:
by a3camero 15y ago
Not to nitpick, but since we're on the topic of corporate governance... Hopefully this will make it a bit more clear on why the governance issues are so murky: At least in Canada, and I'm fairly sure the United States as well it's actually not investors' job to oversee the allocation. The board of directors manages the company. Investors merely get to vote for who gets to be on the board of directors.
Sooo, it's the job of the board of directors to select who the CEO (an officer in Corporate Law-speak) is.
- grandalf 15y agoWell, it's indirect, but they're still ultimately responsible for it. If there weren't any control, why would anyone invest?
- a3camero 15y agoThat's a good question (not sarcasm, it might come off that way). I actually do have a small investment yet I never planned on exercising any control and only control a trivial number of shares. There's a fair bit of academic debate on these theories of control and how shareholders relate to companies. Personally I think there's a lot of freeloading off the small group of big players that do exercise control. I have a certain amount of faith that they won't vote in a way that's seriously adverse to my interests as a little fish.