Bad Day For Individual Investors

Moxyvote.com has announced it's shutting down.  This web site provided a way for shareholders of corporations to sort of band together to vote on issues important to the shareholders, on topics covering anything that corporations do (or should do).   The people who run the site announced that despite working for 5+ years on regulatory change, they are shutting down because the needed changes haven't happened.  One change that was needed, is regulatory support that would enable shareholders to require their brokers to link proxy voting with Moxyvote.  Without that, the critical mass of shareholders that could band together on voting via Moxyvote is limited.

Beyond shareholders banding together to exercise proxy voting, there seems to be another unmet critical need (IMO): direct communication with other shareholders.   When we read of outrageous actions by corporate boards, such as the recent Duke Energy CEO contract from which the CEO "resigned" after one day, resulting in the CEO collecting up to $44 million, shareholders need a way to communicate with each other.   We can't act as a group if we can't consult with each other and formulate appropriate responses.   We now are limited to making proposals considered at annual meetings, but if shareholders could easily discuss issues with fellow shareholders, we wouldn't be limited to simply reacting to Board of Director controlled proxy ballots.  We could pressure corporate boards on timely issues, like CEO compensation.  Without a site like Moxyvote.com, there's little chance of that level of shareholder communication existing.  

There is a perception that corporate boards and top management, holding huge quantities of corporate stock, can act in their own best interest in "enhancing share value" and, therefore, their own monetary profit, over individual shareholders, who are largely reduced to merely being along for the ride.  One example is a board decision to pursue being bought by another company, thereby resulting in massive payouts to holders of large quantities of stock, as opposed to small individual shareholders who may be more interested in long-term growth than cashing out their holding.  Individual shareholders are essentially voiceless and have no leverage to substantially influence corporate board behavior.  

Provisions of Dodd-Frank, like "say on pay," are little more than window dressing.  In truth, individual shareholders are voiceless.