Tim W's musings have got a good debate going, which I sparked off with this:
"It’s simple.
The people who lose most from silly bonus payments are shareholders. As long as we have a daft tax system whereby you are at a disadvantage if you own shares directly and get tax breaks if you own them via a pension fund/unit trust, then people will do the latter (hence the decline in small shareholders and the rise in the % of quoted shares that are owned by ‘institutions’).
These institutions are in cahoots with Big Management at UK plc and together they rip off the little guys and nod each others’ salary packages through.
Ergo, the solution is to reduce tax breaks for pensions and at the same time reduce tax burden on direct share ownership (get rid of Stamp Duty, CGT and higher rate tax on dividends, for example) and there’ll be a lot more small shareholders kicking up a stink at AGMs and refusing to approve directors’ salary packages.
That’s that fixed. Next."
Former Tory seconding, Kay Tie opposing, as ever.
Elevate their cause?
11 hours ago
3 comments:
I may be wrong here (it's been known!) and since I'm blogging from my office desk I cannot check this easily but I seem to recall that Hayek suggested that only an individual (ie no intermediate corporations) should be allowed to vote at an AGM. This would have the effect (which you appear to support) of pension fund members exercising ownership rights directly in the companies in which their agents (ie the pension funds) have chosen to invest the members' money.
Well said, Mark.
Well said, Mark.
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