Two New Articles on Executive Compensation
JCB - Apr 26, 2006
The Times’ Gretchen Morgenson had a wonderful profile this past Sunday of the proxy battle going on over executive compensation at Pfizer. I was especially pleased, as you might imagine, that she saw fit to quote my new book, writing:
But recommendations from proxy advisers, who are paid by institutions for advice on how to vote, are not always heeded â€” a vivid example of a power shift outlined by Mr. Bogle, in his book, “The Battle for the Soul of Capitalism.” Ownership of American companies, he argued, has moved from a diffuse group of individual shareholders into a handful of powerful financial institutions such as mutual funds and banks. These organizations are “reluctant dragons” when it comes to exercising corporate citizenship, Mr. Bogle wrote.
JCB - Apr 17, 2006
I was pleased that the New York Times’ Gretchen Morgenson picked up on my call for the SEC to include mutual fund executives in any new executive compensation disclosure regulations (see Gretchen’s article here).
My letter to the SEC on the topic is available here.
Mutual Funds and Taxes
JCB - Apr 12, 2006
The February 25, 2006 issue of the Wall Street Journal carried an op-ed piece by Eugene Fama and and Ken French (here, for subscribers). Their article inspired me to submit a letter to the editor, which was, for better or worse, never published by the Journal. I’m pleased to have the opportunity to share it with you here:
To the Editor of the Wall Street Journal:
While I greatly respect the major contributions that Professors Fama and French have made to modern portfolio theory, I take strong exception to their recommendation to change the tax code so that mutual fund investors pay taxes only as gains are realized when they sell their shares, rather than be subject to taxes paid as their funds realize gains on their underlying portfolios. (â€œKeep it Simple,â€ February 25, 2006.)