Description:Â Hereâ€™s a vastly boiled-down refresher on corporate governance: A public companyâ€™s management is accountable to its board of directors, which in turn answers to shareholders, who are, after all, the â€œownersâ€ of said public company. These holders keep executives and directors honest by casting votes based on tens of millions of shares dispersed across individual brokerage accounts, pension plans, and mutual funds. A management that consistently does wrong by shareholders is liable to be evicted from its seat at the mahogany table. For elaboration, please see Gordon Gekkoâ€™s speech in the movie Wall Street.
Date: Oct 05, 2012
Questions for Discussions:
- Summarize the criticisms levied against the company and shareholders?
- Why do you suppose there has been such limited shareholder revolt against the firmâ€™s management?
- Would you be a buyer of HP today?
- Do you think HP can ever regain the valuation it once enjoyed?
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