VEA Vice Chair Nell Minow was quoted in a story about Camping World, a public company that has dual class stock and a staggered board and is performing poorly:
“Staggered boards were adopted in the 1980s and 1990s as an antitakeover measure,” says Nell Minow, who advises companies on governance as vice chair of Valueedge Advisors. “The pendulum has swung the other way because shareholders don’t like them. Shareholders want the entire board to be accountable every year.”
Even as more companies get religion, holdouts like Camping World remain. Abetting them are pension managers, mutual funds and others entrusted with the savings of millions of people. Too often, they’re willing to buy shares in companies without getting the full range of rights they need to serve the interests of their own investors. Maybe Camping World’s example will convince them to stop supporting poor corporate governance.