Laggers 😜
Shareholders Don't Vote as If Their Power Matters. It's a Puzzle. -- Barrons.com
About the author: Bryce Tingle is a law professor and member of one of Canada's securities commissions.Engine No. 1 launched an audacious bid in 2021 to place some of its representatives on the board of energy giant Exxon. The newly formed hedge fund argued in part that Exxon's lagging stock price arose from the company's failure to plan for a transition to a low-carbon future. Shareholders rewarded the fund's climate change-themed campaign with three seats on Exxon's board. The campaign attracted a lot of shareholder support, at least in part due to the rhetoric around carbon emissions.Political scientists will find this problem familiar. Individual voters in a political election know that their votes won't alter the outcome. Voters correctly respond to this lack of incentive by refusing to spend much time informing themselves. This is the reason for the legendary ignorance of the average voter. Less than 20% of Americans know their senators and less than half know that their state ha
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