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The shareholders are able. They just have to elect board members who will do what they want, firing the executives if necessary.
by 1123581321 3y ago
The shareholders are able. They just have to elect board members who will do what they want, firing the executives if necessary.
- pc86 3y agoOr better yet have corporate governance in place that doesn't allow a few board members to completely override the will of the people who own the company.
- 1123581321 3y agoWhat are you thinking specifically? A board member who agrees to advocate for shareholder referendum results outside the annual meetings? Or just a larger board?
- teeray 3y agoLiquid democracy. If shareholders feel strongly about something, they should be able to proportionally strip the board of their voting power on those issues.
- slillibri 3y agoThe "people who own the company" are mostly institutional investors, not individual shareholders. Something like 80+% of the outstanding stock is held by institutions.
- cheriot 3y agoThat would require getting passive index funds to change how they vote. Honestly, if their was an index fund that consistently voted for better corporate governance I'd move my money there.
- sneeze-slayer 3y agoEngine No. 1 (the activist group who "won" against Exxon) has an S&P 500 ETF that they use the funds for shareholder activism like this. You can read more about it here: https://etf.engine1.com/vote/ https://etf.engine1.com/vote/
- cheriot 3y agoInteresting, I haven't seen that before. Can't tell if they look at governance / management compensation but still cool.