Long overdue

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The FT reports:

Large activist pension funds are to launch a campaign to shake up underperforming US companies, using new rules due to be agreed on Wednesday that allow shareholders to directly nominate board directors.

The proposal allowing investors to put their own nominees for board seats alongside the company’s nominees is expected to be approved by the Securities and Exchange Commission on a party-line vote, with three Democratic commissioners voting in favour and two Republicans opposing it.

This is long overdue in the States. And pension fund activism is long overdue everywhere.

Next on the agenda though is pension fund opacity – which is almost complete.

It baffles me why pension funds are almost wholly unaccountable for what they do and never send their members accounts. Why is that?