how would you empower small shareholders so they can vote on compensation of CEOs and fund managers?

Most working and retired people have their savings in 401Ks, mutual funds, ETFs, and union funds which are managed by professionals. These same professionals earn monies not much different from the compensation of CEOs. These same professionals vote the shares of the millions of small shareholders on corporate governance, compensation, board of directors, etc. How can small shareholders let their views known to these professional managers so they have a say on how their shares are voted on corporate issues like governance, compensation,etc. I am a Republican, but i cringe each time I read about sign in bonuses, golden parachutes etc. given to prospective or departing CEOs whose claim to fame is solely cutting the number of employees that, of course, will flow in better profits numbers. Anybody can do that without the millions in compensation showered on these CEOs. Is it any wonder that people see this as greed. A mechanism should be found to channel this sentiment in the corporate boardrooms so that board of directors listen to the voice of small shareholders. unfortunately, it is the professional managers who vote the shares of the small shareholders. The interests of the professional managers are not necessarily aligned with those of the small shareholders.

2 Answers

Relevance
  • Jerry
    Lv 7
    9 years ago
    Favorite Answer

    Individual shareholders now get to vote to approve executive compensation as part of the Dodd-Frank legislation. You should see such a question on proxy materials prior to the annual meeting for any stocks you own.

    A few activist shareholders (some hedge funds, less frequent for mutual funds and pension funds) get directly involved in proxy voting. The vast majority have little or no involvement in voting. This is treated as a corporate back office function. Many mutual funds follow the voting recommendations of ISS (Institutional Shareholder Services).

    Shareholders can write to a company board. Contact information is always in proxy materials.

    You can write to a fund management company or to ISS.

    It would be pointless to write to a portfolio manager because they are rarely the actual voters. Given a typical portfolio of 100+ stocks, and some managers running multiple funds, it would be completely impractical for the portfolio manager to vote each proxy.

    Source(s): retired portfolio manager
  • Anonymous
    4 years ago

    My chum you will desire to be extra mad that they don't shop on with the religion. considering that reflects you probably did a undesirable pastime of being the guy of the homestead. This international and the rulers of this international recommend not something because it incredibly is God who places people in power we are to obey them in all issues till they make rules against our following the comprehend God. Romans 13:a million-7 and Acts 5:29. a guy or woman who can not rule his very own residence isn't an extremely stable chief yet as quickly as the little ones are the right age to chosen what they quite have faith if as long as they have been with you and observed the Lord whilst under your roof you probably did you pastime. they are going to would desire to respond to to God for his or her habit. yet in spite of the undeniable fact that they don't look to be honoring mothers and dads by not being a believer it makes you look undesirable as a godly verify. i don't recommend to be serious to you this became into not meant as a placed down. thank you for the question chum. God bless.

Still have questions? Get your answers by asking now.