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I received the following post on a Forum I run, from a "Darin". I think it raises a question that you guys may be interested in.
Darin
How much do controlling interests influence corporations?
« on: Today at 03:53:12 am »
Who elects a corporation's board?
I recently read that financial service providers that own a controlling share in GM, also happen to own quite a bit of various oil co's. No big deal, right? Well... It's not that they own portions of certain industries, it's how much they own of certain industries. For instance, State Street Corp has ~$2.5 billion invested in GM. They also have ~$5 billion invested in Chevron, ~$12 billion invested in Exxon Mobil Corp, ~$2.5 billion in Conoco-Phillips, etc...
Supposedly, the investment ratio of GM's largest stock holders is ~10:1 oil to GM. Because gasoline is relatively inelastic, and our society as a whole is so wealthy, it takes a large change in price to get a small change in demand. What would the odds be that GM's board influences the efficiency of their product line? Or that the board is appointed or elected primarily by the controlling interests? Recent actions are very suspicious, La Cosa Nostra has nothing on these groups...
Hmmm... 
Darin
How much do controlling interests influence corporations?
« on: Today at 03:53:12 am »
Who elects a corporation's board?
I recently read that financial service providers that own a controlling share in GM, also happen to own quite a bit of various oil co's. No big deal, right? Well... It's not that they own portions of certain industries, it's how much they own of certain industries. For instance, State Street Corp has ~$2.5 billion invested in GM. They also have ~$5 billion invested in Chevron, ~$12 billion invested in Exxon Mobil Corp, ~$2.5 billion in Conoco-Phillips, etc...
Supposedly, the investment ratio of GM's largest stock holders is ~10:1 oil to GM. Because gasoline is relatively inelastic, and our society as a whole is so wealthy, it takes a large change in price to get a small change in demand. What would the odds be that GM's board influences the efficiency of their product line? Or that the board is appointed or elected primarily by the controlling interests? Recent actions are very suspicious, La Cosa Nostra has nothing on these groups...
General Motors has urged investors to reject all 10 of the shareholder proposals for its June 5 annual meeting and to re-elect its board.
The proposals include requiring disclosure of political donations, cutting emissions of greenhouse gases and making it easier for smaller shareholders to elect directors, GM said Friday in a regulatory filing.
The proposals include requiring disclosure of political donations, cutting emissions of greenhouse gases and making it easier for smaller shareholders to elect directors, GM said Friday in a regulatory filing.
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