Bankers Billions Analysis by Ryan Bubb and Alex Kaufman suggests that “policies that expand the share of mutual firms in markets in which consumer biases cause social costs or undesirable redistribution may be normatively attractive, even if, as some scholars believe, mutual firms tend to operate less efficiently than do for-profits. For example, policies that [...]

Panel to Examine California Pension/Healthcare Obligations California Governor Arnold Schwarzenegger signed an executive order creating a bipartisan commission to advise him on changes needed to address public pension obligations, particularly rising health care costs. Their recommendations are due in 2008. Labor groups and their Democratic allies in the Legislature immediately cautioned Schwarzenegger to not overreach [...]

The Next Best Step Ed Durkin, the director of corporate affairs at the United Brotherhood of Carpenters and who oversees $40 billion pension funds, is a real hero to many of us seeking more democratic corporate governance. When proxy access stalled, Durkin had the vision to push majority vote. The result is that more than [...]

Grade Inflation or Truly Outstanding? Business Week carries an article, Stars of the Boards, outlining recent awards by the Outstanding Directors Institute. “The group presents a list of candidates — nominated by fellow directors — to an advisory board composed of sitting corporate directors and chief executives. They help determine the final list. To make the cut, [...]

Monks Pessimistic on Governance Reforms In an interview published in the Nov-Dec/2004 issue of The Corporate Board, Robert A.G. Monks, probably the most influential corporate governance leader, expressed his opinion that most of the recent reforms, including Sarbanes-Oxley, have been “box-ticking.” “Genuine change has been persistently obstructed.” Pressed on Sarbanes-Oxley, Monks did admit it contained two [...]

Broadcom Settlement Pushes Democratic Corporate Governance Under the settlement agreement, the cable modem chip maker will be one of only a few US companies that guarantee a board member will be nominated directly by its shareholders. The agreement gives shareholders the ability to nominate candidates for one seat on the board, requires the board to [...]

Christian Science Monitor Says Proposed SEC Hurdles Too Steep In a 10/31 commentary entitled Shareholder Power, the CSM recounts the proposed triggers that would allow shareholders to nominate a token member or two to most boards. “One trigger would be if more than 35 percent of shareholders vote to ‘withhold’ approval of a board-approved candidate. Another [...]

BRT Leads Opposition The Financial Times reports “the most powerful business lobby group in the US plans to ask the Securities Exchange Commission to delay sweeping reforms that investors say will improve shareholder democracy. Public and union pension funds, as well as individual investors, hope the SEC will change rules on proxy filings to make it easier [...]