Video Friday: John Bogle on Index Funds & Corporate Governance

Bogle sees Index Funds, which hold 25% of all stock, as the best hope for governance. However, he acknowledges free rider problem, potential conflict of interests for offending clients. Hopes we will gradually break down the barriers. These are the funds that have held for three years or more, so these are the funds that will have proxy access.

Bogle would like funds to introduce resolutions requiring 75% of shareowner vote in order to make political contributions. They should vote in the interest of their shareowners, not their managers. Corporations shouldn’t be controlled by their agents.

, ,

2 Responses to Video Friday: John Bogle on Index Funds & Corporate Governance

  1. Steven Towns November 28, 2010 at 7:01 pm #

    This is a great clip w/ John Bogle. Thanks for posting it, Jim. It’s amazing how much latent potential there is in index funds. Much work remains to be done.

Trackbacks/Pingbacks

  1. CorpGov.net » Bogle Spinning in His Grave: Vanguard, a “Pay Enabler” - May 27, 2011

    […] he might as well be as far as his ability to influence Vanguard, the giant mutual fund he founded. John Bogle wants funds to introduce resolutions at companies requiring a 75% shareowner vote in order to make […]

Powered by WordPress. Designed by WooThemes