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David Cameron, Britain's prime minister, has suggested giving shareholders a binding vote on pay.The rise of institutional investors (notably mutual funds) has changed the old equation whereby dispersed shareholders confronted concentrated managers.
But these public companies contain within them a potential conflict of interest, between the widely dispersed shareholders who own them and the professional managers who run them on a day-to-day basis.
In the United States and Britain, points out Cristiano Souza of Dynamo Asset Management, conflicts over corporate governance tend to arise between managers and widely dispersed shareholders; in Brazil they pit strong owners against weak investors.
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These insiders would typically own a minority of shares, but enough to prevent dispersed outside shareholders, to whom little corporate information was disclosed, from challenging management.
Ownership was vested in a widely dispersed set of shareholders, unvetted and anonymous.
In public companies, ownership is dispersed among many shareholders, who find it easier to buy and sell shares than to influence management.
They have agreed that the LVMH holding in Hermès which is now 23% will be dispersed among LVMH's shareholders.Halliburton reached a $1.1 billion settlement with plaintiffs over its role in the Gulf of Mexico oil-spill disaster in 2010.
Shareholders are typically too dispersed to monitor the men on the spot.
They cared little for shareholders, who, being widely dispersed, could be safely ignored.
People kept dispersing.
Like the majority of large corporations, Enron was a publicly traded joint stock company, whose ownership was thus dispersed over a perpetually changing multitude of shareholders.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com