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LinkedIn is thus leveraging a gap in shareholder accountability to adopt this dual-class mechanism.
Notions of corporate governance and shareholder accountability are almost entirely absent.
"And to have a Chinese food company controlling a major U.S. meat supplier, without shareholder accountability, is a bit concerning".
Many banks are still state-owned or largely removed from shareholder accountability.
Their cost of capital will be higher because they will almost automatically receive a "governance discount" to reflect the lack of shareholder accountability.
But the fact that they were made at all put Lewis at the center of a furious debate over whether Wall Street executives understand the full consequences of government support and shareholder accountability.
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When the big numbers become public, "shareholders want accountability," Professor Garelli said.
Strong investor protections and more corporate accountability: Shareholders will have new tools to hold corporate boards and management accountable, including a voice on executive compensation decisions and an enhanced ability to nominate and elect corporate directors.
Knowing what a CEO earns is a form of accountability; shareholders can use it as a measuring stick to see whether boards are doing their jobs to make sure shareholders' dollars or euros or yen are being managed efficiently.
Market practices are already converging, mainly to the Anglo-American model of accountability and shareholder rights—a tribute to America's recent success.There is also a defensive element to the new-found zeal for shareholder value and for improving legal and other systems.
A focus on results may also increase accountability to shareholders and even citizens.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com