Does the financial community finally value the turnaround in General Electric
's financial performance? If the election of biggest shareholder Vanguard
's chairman emeritus John Brennan
to GE's board of directors on Friday is any indication, then maybe so, reports the Wall Street Journal
"Jack Brennan knows what shareholders care about and what good governance looks like," stated GE Chief Executive Jeff Immelt in a company statement
about the appointment.
Some experts claim that bringing a representative from an investor onto a board is unusual, including Harvard law professor Lucian Bebchuk
"Mutual funds have generally avoided board representation, because it creates legal issues for money managers," Bebchuk told the WSJ
But a Vanguard spokeswomen says there is no conflict, since Brennan is not involved in the day-to-day management of the investment company. He also holds several other corporate directorships, including at Guardian Life Insurance Co. of America, Hanover Insurance Group and LPL Financial Holdings.
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