I wonder whether we have a triple agency problem that separates the proverbial firewoman’s pension investment from the company that gets the capital. Potential solutions include direct democracy via Swiss style referendums or an option that allows intermediate asset managers to vote on corporate matters.

Most of the big debates today center around shareholders’ preferences. Pundits claim to advocate in favor of this position or that as the best for shareholders. The SEC’s Division of Enforcement claims it seeks to protect “Main Street” investors when it goes after scams, and the NYSE’s corporate governance guide states that directors have a fiduciary duty towards “shareholders.” The Business Roundtable’s famous 2019 statement redefining the purpose of the corporation asserts a move away from shareholder primacy to stakeholder centric regime.  Who is this “mythical”…

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