Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Small Investors Support The Boards. But Few Of Them Vote

FYI: Institutional investors have been flexing their muscles on corporate governance issues this year. So why do individual investors continue to be so disengaged on these matters?
Regards,
Ted
https://www.nytimes.com/2017/10/06/business/small-investors.html?ref=dealbook

Comments

  • edited October 2017
    Clearly some institutional investors such as state pension plans are better in their support of these governance issues than others such as mutual funds:

    https://twitter.com/search?f=tweets&vertical=default&q=sustainability%20ratings%20tell%20half%20the%20story&src=typd

    One reason I've found in my research is that institutional investors like pension plans are by design expected to think long-term. Long-term risks like climate change and poorly designed executive compensation plans which encourage short-term thinking are risks they can't afford to ignore. Meanwhile, many but not all of the retail investors who buy mutual funds too often think short term and are less inclined to care about what could damage a company's prospects five or ten years down the road.
  • @Lewis: Sorry I missed linking your article. Believe me it was unintentional !
    Regards,
    Ted:)
  • @Ted No worries. I just thought the piece was relevant to the issue the Times discussed.
Sign In or Register to comment.