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The university presidents got 'resigned' due to failing the congress questioning. If you are working for public institutions, then it probably matters immensel

The university presidents got 'resigned' due to failing the congress questioning. If you are working for public institutions, then it probably matters immensely. But if you answer only to shareholders, then its more theatre.

flanked-evergl 2y ago
Shareholders will also care, or should also care, I know if I directly held shares in CrowdStrike I would want the CEO gone. The real problem is that the companies that hold shares on behalf of other people, like BlackRock, don't care. Reform of companies like BlackRock is sorely needed, the way they operate is detrimental to the actual owners of equity, and society at large.
- ionwake 2y ago
  Can you please explain, I am totally confused why shareholdes like Blackrock woudl not care who the CEO is if it directly affects profits?
  - flanked-evergl 2y ago
    BlackRock's revenue is not based on the performance of the equity in their clients' portfolios, and while it may have some impact on their profit, it's not as big an impact as it has on their actual clients. Furthermore, most of the money managed by BlackRock is not managed by them through direct choice of the equity holders, so even if the equity holders were not happy with BlackRock it would be very difficult for them to move their money elsewhere. And then finally, the shares of BlackRock itself are also held on behalf of others by institutions like BlackRock, and some of it even by BlackRock itself. So they vote with the voting rights of others as to how they think they should be run. The professional managerial class generally does not care about profits, as they exceed at finding ways of enriching themselves without having to actually deliver anything. They get rich while the average Joe's pension underperforms. They love things like DEI and ESG, as that allows them to define their own parameters for success in ways which in no way benefit the people they have a fiduciary duty to or society.
    - ionwake 2y ago
      I knew it was tied to DEI but I never understood exactly how they make their money, I guess only by client fees and they are too big too fail somehow? Thanks for your informative response
      - flanked-evergl 2y ago
        BlackRock's revenue comes from financial services. You pay them to invest your pension, they charge you based on how many of your assets are under their management, they don't get a performance-based fee. Currently, they have 9.101 trillion USD under management. This is not their money, this is the money of their clients, but their clients pay them, and they take the voting rights associated with the shares that they manage. Technically, if your investment does well, they have more assets under managemnt, and they earn a larger fee, but in practice they can just increase their rate because the people using them aren't shopping around anyway, and there will always be more money invested through them. In reality, most people are paying BlackRock without ever knowing that they are paying them, and then in addition to paying BlackRock in money they get the benefit of your voting rights, which they can then do with as they see fit. They are power brokers who are paid by the people whose power they are brokering.

flanked-evergl 2y ago

Shareholders will also care, or should also care, I know if I directly held shares in CrowdStrike I would want the CEO gone. The real problem is that the companies that hold shares on behalf of other people, like BlackRock, don't care. Reform of companies like BlackRock is sorely needed, the way they operate is detrimental to the actual owners of equity, and society at large.

ionwake 2y ago
Can you please explain, I am totally confused why shareholdes like Blackrock woudl not care who the CEO is if it directly affects profits?
- flanked-evergl 2y ago
  BlackRock's revenue is not based on the performance of the equity in their clients' portfolios, and while it may have some impact on their profit, it's not as big an impact as it has on their actual clients. Furthermore, most of the money managed by BlackRock is not managed by them through direct choice of the equity holders, so even if the equity holders were not happy with BlackRock it would be very difficult for them to move their money elsewhere. And then finally, the shares of BlackRock itself are also held on behalf of others by institutions like BlackRock, and some of it even by BlackRock itself. So they vote with the voting rights of others as to how they think they should be run. The professional managerial class generally does not care about profits, as they exceed at finding ways of enriching themselves without having to actually deliver anything. They get rich while the average Joe's pension underperforms. They love things like DEI and ESG, as that allows them to define their own parameters for success in ways which in no way benefit the people they have a fiduciary duty to or society.
  - ionwake 2y ago
    I knew it was tied to DEI but I never understood exactly how they make their money, I guess only by client fees and they are too big too fail somehow? Thanks for your informative response
    - flanked-evergl 2y ago
      BlackRock's revenue comes from financial services. You pay them to invest your pension, they charge you based on how many of your assets are under their management, they don't get a performance-based fee. Currently, they have 9.101 trillion USD under management. This is not their money, this is the money of their clients, but their clients pay them, and they take the voting rights associated with the shares that they manage. Technically, if your investment does well, they have more assets under managemnt, and they earn a larger fee, but in practice they can just increase their rate because the people using them aren't shopping around anyway, and there will always be more money invested through them. In reality, most people are paying BlackRock without ever knowing that they are paying them, and then in addition to paying BlackRock in money they get the benefit of your voting rights, which they can then do with as they see fit. They are power brokers who are paid by the people whose power they are brokering.