How Much Power Should Shareholders Have?

The Financial Times reports today that “The Laborers’ International Union of North America, whose pension funds manage about $30bn, said it had filed proposals with 14 companies asking them to detail their succession planning policies and put them to a vote in their annual meetings.”

How will shareholders know what succession plan works best for their company? What will a “no” vote on a succession policy mean? How will the company know what needs to be corrected to win shareholder approval?

There is a balance here somewhere. The basic corporate deal is that shareholders are insulated from liability if they stay out of management. If they are going to make management decisions, maybe some thought should be given to removing some of their insulation.

- JM, 12/18/09

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!