Tag Archives | capitalism

Ownership

Ownership: Rosen & Case

  Ownership: Reinventing companies, Capitalism, and Who Owns What by Corey Rosen and John Case should be read by every director on the board of public pension funds. I (James McRitchie) am planning to send a copy to all the board members of CalPERS once newly elected members take office next year. In celebration of […]

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Millennial Socialists

Millennial Socialists Bolstered by SEC

Millennial socialists have not been overtly embraced by the SEC, but the Commission’s recent proposals to disempower proxy advisors and shareholders below the level of multi-millionaire’s plays into the hands of those advocating a socialist economy. The Commission’s proposed rules would further concentrate the power of corporate elites and reduce their accountability to “Main Street” […]

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Tepper - Myth of Capitalism

Tepper’s Myth of Capitalism reviewed

Tepper begins his book (with Hearn) by recounting United Airlines forcibly removing paying passenger Dr. David Dao, a Vietnamese-American pulmonologist, from an overbooked plane. The video of him going unconscious and bloody went viral. United’s CEO initially blamed the passenger for resisting but later settled. Jonathan Tepper and Denise Hearn fail to mention Dr. Dao suffered a broken nose, loss […]

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participation would lead to higher growth rates.

Participation Needed to Restore Trust

Participation by every American family in the market and in corporate governance is needed to address growing inequality, sense of powerlessness and slowing growth rate. As long as 84% of corporate stock is owned and controlled by 10% of Americans, corporations will not be trusted; nor should they be. (more…)

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Do the opposite

Do the Opposite: Franklin Resources Plays George

Do the Opposite was funny in the sitcom Seinfeld but not so funny when Franklin Resources does the opposite of shareholder proposals. In fact, doing the opposite threatens the existence of even the facade of democratic corporate governance, alive since 1947 with the legal right of shareholders to file and vote on proposals. (more…)

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Capitalists Arise - Monthly Surplus

Capitalists Arise!: Serve Stakeholders

Peter Georgescu’s Capitalists Arise!: End Economic Inequality, Grow the Middle Class, Heal the Nation correctly identifies short-termism and a focus on stock price as a problem contributing to growing wealth inequality. His solutions depend on enlightened managers and boards to transform how America does business by taking all stakeholders into account, not just shareholders. I say, don’t […]

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Value Creation Thinking

Value Creation Thinking: Review

While primarily concerned with explaining value creation thinking and the life-cycle valuation framework, the book also delves into context, specifically how Bartley Madden views evolved. I find his work compelling, at least in part because he shares my interest in understanding the world from the bottom up, instead of top down. Additionally, he focuses attention […]

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Agency Capitalism: Corrective Measures (Part 1)

In their recent paper, The Agency Costs of Agency Capitalism: Activist Investors and the Revaluation of Governance Rights, Ronald J. Gilson and Jeffrey N. Gordon (January 1, 2013) argue that proposed reforms to accelerate disclosure of equity positions and prohibit certain derivatives would discourage the vital role of activist shareowners. Below, I argue in support of their position […]

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Extracurricular Reading

From August 2011 Harper’s Index: Portion of employers who say they conduct criminal-background checks on potential employees: ¾ Chance that an American adult has a criminal record: 1 in 4 Percentage of applicants offered undergraduate admission to Harvard this year: 6.2 Percentage of applicants accepted for employment on McDonanld’s National Hiring day in April: 6.2 […]

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