No Shareholders’ Spring, by Luigi Zingales, Commentary, Project Syndicate: The ongoing global economic crisis is not only causing incumbent governments to lose elections; it is also shaking corporate boards. ... Frustrated by low returns, investors are much feistier.
Shareholder activists can also claim other (at least partial) victories at Yahoo!, where a shareholder activist forced the newly appointed CEO to resign for falsifying his educational credentials.
But many commentators’ hyperbolic depiction of a “shareholders’ spring,” with its resonance of ousted Arab dictators, is inappropriate for several reasons, not the least of which is the fact that the Arab Spring actually toppled regimes. At the moment, the current shareholders’ revolt is failing to achieve any significant result. ...