CEOs Compensated Correctly, Vast Majority Of Shareholders Say

Nonsense.

They are saying nothing of the kind, and unless the author is dumber than a stone, that author is deliberately coming to a dishonest conclusion.

Shareholders are summoned at intervals usually once a year to vote on the board of directors and any policy changes. These votes are in almost all cases pre-ordained in their outcomes.

Shareholders under American law are almost powerless. Only large shareholders can build substantial building blocks of votes to challenge a current board. So, most shareholders are simply silent or agreeable.

What the vast majority of shareholders said was, “There was nothing that could be done, the board of directors is too entrenched to challenge and they have been almost to a man selected by the CEO. A no vote would be a waste of my time and could make enemies down the road.”

I don’t like this kind of misleading nonsense. “All is well, the money is well earned, compensation follows the free market, etc.”

What the shareholders would do if actually given the power they are supposed to have under the laws of property is unknown but I find it unlikely they would like to see their dividends diminished to reward CEO’s regardless of their performance and far in excess of CEO salaries in other nations.

James Pilant

CEOs Compensated Correctly, Vast Majority Of Shareholders Say

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Rio Tinto shareholders not convinced on nuclear future (via Antinuclear)

A nuclear future is inevitable? I don’t think so.

Apparently the actual owners are not so sure it’s a great idea.

The cost of a nuclear plant is staggering and other kinds are cheaper, sometimes  a lot cheaper.

James Pilant

Tom Albanese, Rio’s chiefexecutive, said uranium from the Ranger mine had been exported to Japan, although commercial confidence prevented him from confirming whether it was being used at Fukushima… ”Even before the Fukushima disaster, investors and insurers in the US, for example, could not be coaxed to back nuclear power.” – Scott Ludlam A nuclear Australia is inevitable: Rio chairman, Sydney Morning Herald, Courtney Trenwith, May 6, 2011,  A … Read More

via Antinuclear

Shareholders Gain Influence

Shareholders Gain Influence

Loren Steffy writing in the Houston Chronicle has hopes that this year might be the year of the shareholder.

And it’s about time. The corporation is supposed to be controlled by those who put money into the operation, the investors. Yet, as far as I can tell, the shareholders are marginalized and ignored almost all the time. Only when a single shareholder controls a large block of stock do we see any element of corporate democracy.

The federal government should act to make corporations accountable to the people that own them. It’s ridiculous to live in a nation that talks about democracy and preaches it to other countries continue the rank hypocrisy of ownership without power.

James Pilant