study by Cotter, Shivdasani and Zenner, reported in the November issue of Directorship, found that returns to a target firm’s stockholders were 20% higher when their board was independent than when a majority of directors were insiders or outsiders with ties.
The same issue also carries an article by Robert Heidrick on making director evaluations work.
(see Businesswire) “Georgeson noted that support for shareholder-sponsored proposals to rescind poison pills (typically they also ask to put rights plans to binding votes) has been increasing gradually for the last 11 years, despite a series of studies demonstrating that poison pills are associated with increases in shareholder value in binding contests.
(The ISS Friday Report, 11/21) itman/Gregory set up a fund run by 6 fund managers where each manager was limited to 15 stocks.
ccording to recent estimates by NCEO, there are now 8.7 million participants in ESOPs with 3 billion in assets.
In addition 2 million participate in 401(k) plans investing primarily in employer stock (totaling 0 billion) and another 5 million employees have stock options.
Writing on the results, Roger Lowenstein indicates “over-diversification is a sign of a manager investing so as to minimize short-term volatility at the expense of long-term results.” (WSJ, 11/20, p.
In addition, a case study of Whole Foods finds employees own 19% of the company, employee decision-making power is high using a team approach, and no one in the company can make a salary of more than 10 times the average wage.Maybe these factors help account for the firm’s phenomenal growth?new study by Georgeson & Co finds companies with poison pills receive higher premiums.Masters Select Equityhas outperformed each of the individual funds run by its managers.
Year to date returns as of the end of November are 27.8%.
he NACD released its 1997 Corporate governance Survey.