Monday, January 3, 2011

Ask management to leave the room

...Next time you go to an AGM, if you think there is cause for concern, ask the CEO during the Q&A if management could leave the room for 15 minutes because you have a few questions to ask the independent directors concerning executive compensation, and point out that it would not be appropriate for management to be present for such a discussion. Don’t be afraid. The meeting is for you, the shareholder. If the CEO gets defensive, that might be taken as a bad sign. If the independent directors get defensive, that could be taken as a really bad sign, because it would suggest that, in their hearts, they don’t represent shareholders at all.
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