re for whom17 May 2018 07:37
yes you are right. There are two issues to consider here. One is the apparent immunity of directors who invariably forget that they are there to run the company on behalf of the best interest of its shareholders. There need to be a change in corporate governance law and scope of sanctions needs to be widened past the blatantly criminal. That board members are up for election so it may well be down to a change in shareholder attitude esp the face less institutions which seem to block vote BoD members through year after year. So much of the blame lies here with these lazy index tracking weasels who gracelessly and shamelessly take extortionate fees for doing diddly squat.
Secondly its its a question of culture and attitude towards shareholders in general. Politicians especially of the Left naively see shareholders as toffs and not grafters like themselves or everyone else in the ' working classes" So it was no surprise to hear Brown and his Cabinet frequently state that it was ' right and proper for the shareholders to take the pain and be held responsible" ie soaking the rich again which is an old Commie/labour motto. Of course little do the morons realise that the unions they all belong to all invest in the same stocks as the rich parasites they worked do hard to support .
Things are changing slowly, activists are getting on Boards and institutions are beginning to vote against pay awards. but just early doors sadly The laws need to be strengthened in favour of investors and institutions should be put under greater scrutiny as to how they justify the fees they charge. Of course you have a choice as to where you invest but then there is little to differentiate between the institutions largely mediocre and as indifferent to their investors as they are to behaviour of the BoD they invest in on behalf of others. Conclusion both need a kick up the jacksy. Let me know when you find some one who can do it. gl