Comment Re:When a company is fined, who pays? (Score 1) 408
You say that like the shareholders have a say in who is hired. They may be allowed to vote on the board in some cases, but if some Director down the line is helping the company's bottom line, the board will think nothing of it. Remember, because of things like AA many companies will go through a normal hiring process to give every person a chance to apply for the job. You are also assuming it is always the board doing the wrong and/or the board always knows about it. Why should I be punished because some guy who is not on the board is doing crooked stuff? Besides saying who is possibly on the board itself, the shareholders have much less say about who gets hired to do what than you think. That would be like punishing the night manager of K-Mart for an employee stealing from the store. Well technically, the night manager hired the guy, so it is all on him. Let's go further: the night manager is hired in by the general manager, who was hired by the regional manager, who was hired by some corporate guy, who was hired by the board. Well, I guess it is the shareholder's fault for the thousands in theft the guy in the warehouse stole, since the shareholders brought in those guys on the board. Yes, this is a crazy example, and a better one could probably be thought of, but you see my point. Unless it is somebody specifically on the board, who got voted in by the shareholders, it should not be placed on the shareholders.
I went based off of a wrong doing perspective. So if we take this to a higher level, say dumping toxic waste into a lake, and the shareholders and board are unaware, but some director somewhere said that he found a good, cheaper way to get rid of the waste, we should still take it from the shareholders?
You are also acting as though some corporate big wig will be honest enough for you to dig up their crooked deeds they have done. No, it is like being in politics, they will bold face lie to you and then get into office and you think "damn, had I known he would do this, I wouldn't have voted for him"
I have to disagree with you and say that it is not the shareholders who should take the hit. It should not be their responsibility to go CIA and dig up if the person did any dirty deeds, and if they didn't/the deeds went undocumented, then they need to find some way of investigating further to ensure the information they have is accurate. The shareholders put a trust into the board to select the proper people, and when that does not happen, just like in politics, the common man (shareholders/tax payers) have to take the hit.
I went based off of a wrong doing perspective. So if we take this to a higher level, say dumping toxic waste into a lake, and the shareholders and board are unaware, but some director somewhere said that he found a good, cheaper way to get rid of the waste, we should still take it from the shareholders?
You are also acting as though some corporate big wig will be honest enough for you to dig up their crooked deeds they have done. No, it is like being in politics, they will bold face lie to you and then get into office and you think "damn, had I known he would do this, I wouldn't have voted for him"
I have to disagree with you and say that it is not the shareholders who should take the hit. It should not be their responsibility to go CIA and dig up if the person did any dirty deeds, and if they didn't/the deeds went undocumented, then they need to find some way of investigating further to ensure the information they have is accurate. The shareholders put a trust into the board to select the proper people, and when that does not happen, just like in politics, the common man (shareholders/tax payers) have to take the hit.