You often hear critiques of large investors such as pension funds, foundations and major mutual fund managements, who supposedly do bad jobs in overseeing the management of companies in which they invest.
There are two schools of thought on this subject. The main idea has always been that you do not buy or retain ownership of securities in firms whose management you do not like.
Investors who actively promote their influence in making managerial changes often have another motive. They are often more interested in takeovers and active management acquisitions.
Furthermore, it takes a lot of gumption for outside investors who think they can micromanage because they have a large stake in a company. They may make better use of their time elsewhere.
Yes, they may want to look for over=zealous salaries and bonuses and for fraud, but that should be all. Good corporate performance is what they should seek.
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