Majority doesn’t rule for shareholders — at least when it comes to boards of directors.
Since 2008, more than 200 directors on the boards of US companies have failed to receive a majority of shareholder votes, but in nearly all cases the directors kept their jobs, according to Bloomberg Businessweek.
In many publicly-traded corporations, shareholder votes aren’t binding. In some, a director only needs a single vote to keep his job.
Though shareholders have gained new rights in the wake of the financial crisis, most boards can still basically do whatever they want — and these numbers show that they’re overwhelmingly doing just that.
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