Management.

  • These are open discussion topics. Do not think of these topics as questions you must answer.  The forum is meant for you to express your learning and questions and conclusions you have.
  • Do not go to some website and copy and paste. Use your learning this week to apply your analytical skills in order to further your learning.

Week 1 Discussion topic

After you have read the J.B. Stewart NY Times article that was assigned for this week, please comment on the last paragraph of the article:  “But the reality is that H.P. can do whatever it wants, regardless of what the shareholders say. Mr. McGurn said that the Council of Institutional Investors, a trade group for large public pension funds and other investors, often follows up with letter-writing campaigns at companies where shareholders have voted their strong disapproval of directors. Most of the time, he said, it doesn’t even get a response.”

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Why do you think that this is the case?  Are there more effective mechanisms for voicing shareholder disapproval of actions taken by corporations in terms of retaining “bad” directors as members of the board of directors?

Management

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