If you're reading this story, you probably know that mutual funds are among the more popular investment choices in America. And you probably think that makes the people who run mutual funds pretty powerful.
While overall you'd be right, the New York Times
has identified one major area where funds haven't had an impact: executive pay at companies.
Despite institutional vehicles owning a large percent of the US equities markets, the shareholders have not made moves to ct executive pay in times of poor stock performance. The Times uses the example of Oracle, where the CEO's pay increased 11 percent despite the stock dropping 18 percent.
The article then goes into a somewhat lengthy but interesting history of the rise of mutual funds, talking to none other than Vanguard
founder Jack Bogle
If you're interested, check out the original article here
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