One the one hand, here it is currently en vogue to complain about amoral American hedge funds, comparing them to locusts. Today on NDR Info I heard about the shareholders’ meeting of Cewe Color. Its hedge fund shareholders are demanding the resignation of the CEO and a special debt-financed dividend for shareholders (i.e. themselves).
On the other hand, this week Klaus Kleinfeld resigned as chairman of Siemens. A big factor in his resignation was apparently the tougher corporate ethics regulation in the US, which applies to Siemens since it is listed on the NYSE.
I’m confused now about which country has the more moral corporations.
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Hmmm, let’s see: shareholders (unpopular shareholders, maybe, but shareholders, nonetheless) trying to maximize the value of their investment (which in economic circles is perfectly rational behavior), or alleged bribery…?
Despite what that thought might imply, I’d say neither has (or both have) the more moral corporations. These are (hopefully) more extreme examples of corporate and shareholder behavior, but it does highlight the “pot calling the kettle black” problem that a lot of folks have.
I’ll bet you saw that one coming, huh?
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