Part of being a shareholder is corporate governance. It is incumbent on us to vote the proxies we receive. To my left, I have ten or so proxies I will vote tomorrow.
If we don’t vote our proxies we have no right to complain about corporate governance. And, for those who own mutual funds, have you told your mutual fund company what you care about? They may or may not listen to you, but if they hear a decent number saying the same thing, they might take your position, multiplying your opinion by ten or more.
Voting proxies is a matter that helps keep shareholder capitalism morally legitimate. Without it, corporation managements are tempted to do as they please, which generally leads to worse results for all but management.
And if I might get on the soapbox for a moment, I would like to say that we all as investors should begin to vote down management pay and incentive packages where we can. Let’s engage in brinkmanship. They are paid well enough already. If they don’t get the increase, where will they go? And, isn’t there a lot of talent in the wings that could replace them? My view is the best management teams are those that love what they do for the challenge, rather than the money.
Incentives for the rank and file are another matter, and should be approved, unless they are excessive. Also, ignore the special interests of the loony left who own stock only to affect corporate policy.
That’s all. I have been traveling and am rather tired. But vote your proxies!