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Have the % of institutionally held stocks risen high enough to negate the effectiveness of shareholder's votes?

Is the mismanagement of today's corporations, caused simply because the 401K, mutual fund, insurance funds, and so forth, no longer can exert meaningful voting rights?

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  • 1 decade ago
    Favorite Answer

    It depends on what you mean by effectiveness of shareholder's votes. If you mean individual investors vs. financial institutions making corporate action decisions then I would say that institutional votes outweigh individuals but, that is not a bad thing necessarily. I think individual investors just vote the directors recommendations or do not vote at all.

  • 1 decade ago

    yes

  • 1 decade ago

    it has never been otherwise, sorry bark up another tree, thanks for your interest and knowledge.

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