Nope, Shareholders Shouldn’t Be More Involved With Executive Pay | Investing to Wealth:
"Why don't shareholders care more? Shareholder apathy is completely rational because diversified shareholders lack an incentive to become overly familiar with the operations of individual companies. They own a diversified portfolio of investments, so their interest lies in a prosperous economy and a rising stock market rather than the governance of individual corporations. They rationally care about the big picture rather than the compensation of individual executives."
2 comments:
Investors have been lulled into this stupor by modern finance theory.
When you invest several thousand dollars into a company, you should CARE about every aspect of the business.
The Markovian efficient frontier doesn't take into account the fact that past returns of the company that may statistically optimize your portfolio is run by a bunch of idiots.
I absolutly agree
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