Wednesday, 18 January 2012

Shareholder Democracy

It has been proposed that shareholders should have new powers to veto excessive pay for directors. Some advocate that there should be one-person-one-vote, others one-share-one-vote. The first limits the power of institutional investors, whose own directors may be a part of the super-salary merry-go-round; the second prevents activist share holders, who may buy only one share, from ham-stringing businesses in sectors such as defence, tobacco or pharmaceuticals.
In either scenario it would be feasible for the Interactive Democracy infrastructure to be used, improving the efficiency of shareholder democracy and empowering those shareholders who can't always attend an AGM.

No comments: