Financial Times FT.com

All power to the shareholders

Published: January 26 2005 02:00 | Last updated: January 26 2005 02:00

In corporate governance, shareholder activism is preferable to government intervention. The paradox is that it may require government action to allow shareholders to wield the power they should exercise as company owners. In this respect, British investors may be in a better position to influence directors than their US counterparts.

Both countries have been afflicted by corporate scandals in recent years that have left shareholders angry and frustrated. In the UK, the issue was payment for failure - executives who left failing companies with fat pay-offs.

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