Death to broker votes
Kudos to CtW Investment Group for bringing the issue of broker votes back to the forefront with their well-publicized letter to SEC Chairman Christopher Cox (read it here).
Long known to create a mighty conflict of interest for any brokerage firm trying to win corporate investment business, broker votes go against the grain of every major piece of financial doctrine since the Great Depression.
Simply put, the concept of broker votes is absolutely asinine and was likely invented by the same communist knucklehead that created the Democratic party Super Delegate voting system.
Even more disturbing is the ability for brokerage firms to discard investors’ votes Hugo Chavez-style if those votes are not received 10 days in advance of the shareholder meeting. Where has Joe McCarthy been when we’ve needed him?
Sure, there was probably a time when broker votes were required due to the threat of not meeting a quorum. But by the time the NYSE called for the end of broker votes in 2006, institutional money more than ensured that any quorum could be met.
It’s time for the SEC to recognize the 21st century demands of investors and give broker votes the death sentence.
