The motivation and impact of pension fund activism

Article Abstract:

Pension funds now play an increasingly active role in the governance of companies they have hold stock in. Much of their activity comes in the form of shareholder proposals, which range from requests to alter the membership of corporate boards to involvement in the removal of takeover defenses. An examination of pension fund proposals submitted by the largest, most active funds in the 1987-1993 period shows that significant heterogeneity exists in the activism objectives of individual funds. It is confirmed, however, that activism tactics are always linked to a strategy of maximizing fund values.

Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds, Investor Relations, Research, Investments, Stockholders, Beliefs, opinions and attitudes, Voting rights (Stockholders), Stockholder meetings

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Factors affecting the number of outside directorships held by CEOs

Article Abstract:

The elements that influence the number of directorships held by chief executive officers (CEOs) are evaluated. Using factors such as variation across firms and CEO style, relationships between boards, market for outside directors, perquisite consumptions and company size, it is determined that CEOs of firms with higher growth potential hold fewer outside directorships, while CEOs who do not hold the board chairmanships in their own firms and CEOs who have served in their positions longer hold more directorships in outside firms.

Evaluation, Chief executive officers, Composition

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Larger board size and decreasing firm value in small firms

Article Abstract:

A negative relationship exists between board size and company profitability. A sample of small and midsize Finnish companies revealed that the negative effects of board-size can persist even under the existence of a much lesser degree of separation between ownership and control. Such finding supports a hypothesis that even smaller boards and companies do experience communication- and coordination-related problems.

Finland, Economic aspects

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