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Essay / How the Walmart scandal highlights the role of activist investors
Walmart has often been criticized by several audiences. An employee filed a class-action lawsuit accusing retailers of sex discrimination. But Walmart has learned that it can always count on its shareholders. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayWalmart is not working well with its investors because many investors are unhappy with the way the company approaches issues . In 2012, at an annual shareholder meeting, investors protested the lack of corrective action regarding corruption allegations. Forbes also cited investors as being a very vocal group and how they change direction. Additionally, the company's final shareholder vote to elect its board of directors showed unprecedented dissent against key executives and board members following allegations. 32 percent of uninitiated shares were voted to oust the CEO, 31 percent voted against the president, and 38 percent voted against the former CEO. These percentages can show how bad the relationship between the company and its investors is after the deal. Even at the 2013 AGM, investors are still unhappy with the ongoing issue. Walmart, through allegations of corruption, is unable to properly communicate the statement of concern to investors, which has led to many difficult relationships between them. Under the laws of most states, leaders are therefore chosen in case they run unopposed. In general, do it. In most open partnerships, leaders face no opposition, which influences the future conclusion of an inevitable end product. Ordinarily, leaders who do not enjoy the lion's share of support submit a spontaneous letter of abdication that is rarely recognized. These “zombie leaders” survive despite their figurative disappearance at the hands of investors. The absence of real investor interest in the process of choosing managers can be seen from the results. Leaders chosen by the board often need a decent, wide variety. In most large, open organizations, women and minorities are either missing or subject to an informal breaking point, perhaps a few. Additionally, these sheets tend to claim remuneration for directors that is unbalanced in relation to the remuneration of individual representatives and often insufficiently linked to actual execution. The slim chance that investors could run a competing slate would almost certainly profoundly affect how the companies are run. . Managers aware of the real risk of losing their business would be much more motivated to focus on the long-term interests of investors. Moreover, granting this privilege to investors would hardly entail any additional costs for the organization. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay When the Los Angeles Times reported that the company had received a By imposing restraining orders against protesters, it was their first step toward taking action on the situation. They were also careful not to allow some protesters onto private property in the state of Arkansas. They did so to engage in activities such as picketing, patrolling, parades,..