Evonomics has republished the article How Hedge Fund Activists Prey on Companies: When corporate raiders coopted “shareholder democracy” for their own ends.
In combination, these regulatory changes increased the incidence of predatory value extraction in the U.S. economy. For more than a decade, major public corporations have routinely disbursed to shareholders nearly all of their profits, and often sums equivalent to more than their profits, in the form of stock buybacks, dividends, and deferred taxes while investing less for the future and undertaking restructuring simply for the sake of reducing costs.
This article was an education and a half for me. How many of you can attach a family name to the USA President in the 1990s when much of this got started?