Now if one is a shareholder, that’s another story, and one indeed has the right to be annoyed. But that anger should not be directed at the executives – they asked and they received. Instead it’s the board of directors that should be held accountable. Their responsibility is to provide oversight on behalf of the shareholders. And that’s where the problem has been. Directors have been ignorant, irresponsible, or conflicted. Time to throw these guys out and replace them with people the shareholders can trust.
That process of replacing puppet directors is about to get easier for shareholders. Shareholders can now nominate their own directors rather than just voting for them. Here is FT the story. And here is the overview.
So next time you get mad about some executive comp, or other stupid decisions a company makes, become a shareholder, nominate your guy/gal, and throw the rascals out.
“Under the proposal, shareholders who otherwise are provided the opportunity to nominate directors at a shareholder meeting would be able to have their nominees included in the company proxy ballot that is sent to all voters. Shareholders would also have the ability to use shareholder proposals to modify the company’s nomination procedures or disclosure about elections, so long as those proposals do not conflict with state law or Commission rules.”