Archive | June, 2012

Review: The Shareholder Value Myth

Like the Economics of Good and Evil by Tomas Sedlacek, Lynn Stout’s The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public is an exploration into the history and sociology of knowledge. While Sedlacek ambitiously tackles several myths at the core of economics, Stout focuses laserlike on the misconception that corporations are required to “maximize shareholder value.” Continue Reading →

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If I Were on the SEC's Investor Advisory Committee: Recommendations to Help Retail Investors

The new SEC Investor Advisory Committee (SECIAC) met for the first time last week. It appears there may be agreement by Committee members to first concentrate their efforts on retail investors. At least that was the message of several Committee members and the expressed wish of Commissioner Luis A. Aguilar. The SECIAC would do well to recommend leveling the playing field between retail and institutional investors and between investors of all types and corporate management. Retail investors are more likely to return to the market if the scales aren’t so often tipped against them.  Continue Reading →

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Guest Post: The High Cost of ERM Herd Mentality

Enterprise Risk Management (“ERM”) as a movement has been around for more than a decade.  Unfortunately, a 2010 COSO survey disclosed that only limited progress has been made convincing senior management and boards that ERM is key to maximizing and safeguarding long term enterprise value, allocating expensive human and financial resources,  or managing major risks to strategic and core business objectives. Continue Reading →

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DaVita: How I Voted – Proxy Score 54

DaVita ($DVA) is one of the stocks in my portfolio. Their annual meeting is coming up on 6/11/2012. Voting ends 6/8 at 5 am ET on Moxy Vote’s proxy voting platform (early because of the weekend), which had 3 recommendations “from good causes” when I checked and voted on 6/6/2012. However, two were consolidations, so they really only had recommendations from Calvert. ProxyDemocracy.org had information on 4 funds voting.  I voted with management 54% of the time. Continue Reading →

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Review: Governance Reimagined – Risk Capital as Commons

Governance Reimagined: Organizational Design, Risk, and Value Creation (Wiley Finance) by David R. Koenig envisions a fundamental redesign based on a networked/distributive model centered around risk capital viewed as a “commons.”  Like Guns, Germs, and Steel: The Fates of Human Societies by Jared M. Diamond, Koenig weaves together ideas from a wide variety of sources, exploding many myths along the way.  Continue Reading →

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Emotional Intelligence

We need to do a better job of evaluating the emotional competency or our leaders. “A fine balance has to be maintained between technical and emotional competency of the individual and organization objectives and culture, wrote Sonia Jaspal back in 11/16/2011. Here is an excerpt from her argument, which deserves wider circulation.  Continue Reading →

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