Large
investors such as pension funds, foundations and major mutual funds, often critique the management of companies in
which they invest.
There
are two schools of thought about the solution. The main idea has
always been that you do not buy or retain ownership of securities in
firms whose management you do not like.
Investors
who actively promote their influence in making managerial changes
often have another motive. They often are more interested in
takeovers and active management.
Furthermore,
it takes a lot of nerve and arrogance on the part of outside
investors who think they can micromanage because they have a large
stake in a company. They may make better use of their time elsewhere.
Sure,
they may want to look for over=zealous salaries and bonuses and for
fraud, but that should be all. Good corporate performance is what
they should seek.(See the Earl J Weinreb NewsHole® comments and
@BusinessNewshole tweets.)
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