House of Paine

john bogles on ...baby

 corporate gub-nintz :

what about insider 
         run away pay days 

 the donny Q  jousting the mutual mills 

sez blame it on

the mutual stoke funds 

they got the clout but ...

"hey the fuckers are tanking
  they're all
   on the  trans nat insiders scratch pad "



 we all want to
    cut 10 thousand  ceos' pay  package 
            for non performance 

  right ???

 but to do that
u gotta  
 
     GET THE BOARD 
                 to  swing the axe 

BUT 
 THE BOARD MAY NEED A FEW  MEMBERS VOTED OFF FIRST 



   and the funds have 
paid advisors telling em 
to use their votes 
  just that  way 


but 

"recommendations from proxy advisers
 who are paid by institutions
 for advice on how to vote  
... are not always heeded" 

-------------------------

background bogle style :



 the  power shift
 outlined by Mr. Bogle
 in  "The Battle for the Soul of Capitalism."


" Ownership of American companies,
  has moved from a diffuse group 
of individual shareholders
 into a handful
 of mutual funds and banks"


" These organizations are 
"reluctant dragons" 
when it comes to exercising 
corporate citizenship"
 
"they face...
a clear conflict of interest 
because they
 manage
 the retirement plan assets
 of the very corporations 
whose shares they own 
and collectively control "

 managing fees for the pension plans 
 sure is worth more then 
the  stock  up value
                 bene
 from  cutting ceo pay  

"Even when a governance
 or proxy issue involves a corporation
 that is not a client," he added,
 "the reluctance to speak out persists,
 giving credence 
to this perhaps apocryphal comment
 by a pension fund manager: 
'There are only two types of clients
 we don't want to offend:
 actual or potential.' "

"Jeffrey Diermeier, chairman of the CFA Institute
 the nonprofit association 
that sets performance-reporting standards 
for the investment industry,
 said these types of relationships were troubling"

 "It is fundamental that multiproduct
 financial organizations aggressively 
and proactively deal with these conflicts
 by actively requiring their asset managers
 to vote proxies in the interests 
of their asset management clients 
and not in their own short-term business interests,"