Outside the Box: Your 401(k) retirement plan could be fueling insane executive pay

New York Times columnist Gretchen Morgenson recently wrote an excellent article about how investment management giants Vanguard Group and Blackrock vote in favor of executive pay proposals well over 90% of the time.

Morgenson, with the help of data from research firm Proxy Insight and echoing this Reuters article from last spring, found that Vanguard voted in favor of pay practices 98.1% of the time. The funniest (or saddest, depending on your perspective) part of the Times article was the report that Vanguard disputed the finding, only to correct it by two percentage points to 96%.

In other words, big fund companies aren’t even arguing about the fact that, while they’re the major shareholders, the executives of the companies whose shares they own can virtually name their compensation.

>>> Original Source <<<