Re:What really happened at Volkswagen
by Animats on Sunday June 04, 2017 @01:51PM
(#14482589)
The "autocratic" management style seems to be the biggest cause of this issue.
Unclear. The author of the book takes that position. The author seems to be hostile to worker ownership or state ownership.
Companies with multiple classes of stock to deprive the stockholders of voting control can have a much worse autocratic leader problem. Google and Facebook are set up that way, of course. Here's the list of the 28 S&P 500 companies with restricted voting rights.[1] As a group, they underperform the full S&P 500. Some of those companies that aren't doing well face shareholder litigation. Viacom's minority shareholders did manage to get rid of Sumner Redstone, but he was 93 and really had to go.
For many decades, no big company did this, because the NYSE didn't allow such companies to be listed. (Except for Ford and Hershey, which predated that rule; they were grandfathered in.) It's still rare, but now companies can get away with it.
Unclear. The author of the book takes that position. The author seems to be hostile to worker ownership or state ownership.
Companies with multiple classes of stock to deprive the stockholders of voting control can have a much worse autocratic leader problem. Google and Facebook are set up that way, of course. Here's the list of the 28 S&P 500 companies with restricted voting rights.[1] As a group, they underperform the full S&P 500. Some of those companies that aren't doing well face shareholder litigation. Viacom's minority shareholders did manage to get rid of Sumner Redstone, but he was 93 and really had to go.
For many decades, no big company did this, because the NYSE didn't allow such companies to be listed. (Except for Ford and Hershey, which predated that rule; they were grandfathered in.) It's still rare, but now companies can get away with it.
[1] https://s.thestreet.com/files/tsc/v2008/photos/contrib/uploa...