In theory, the directors of a corporation are hired to provide independent oversight and protect shareholder interests. In practice, they’ve developed a reputation as country club chums with the executive managers.
Investing in mutual funds and ETFs offers an efficient solution for investors to engage in corporate governance issues. When you purchase a fund, you authorize fund managers to vote proxies on your behalf.
There is great disagreement in the financial services world if an advisor who has continuous and comprehensive management of a client’s assets should be allowed to also benefit from transactions that they recommend.