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Unions and other so-called “shareholder activists” got a lot of free press lately for challenging the compensation of Health Management Associates executives.
But despite photos of picketers in the papers and on TV, the unions ended with a big fail.
Shareholders of the Naples-based hospital company resoundingly approved an executive-pay package by better than 92% margins, telling fellow shareholder “activists” to go picket somewhere else.
Instead of picketing at the annual meeting or filing threatening letters with the Securities and Exchange Commission, unions should put their money where their mouths are and sell the stock when they don't like the company.
We think there's no better way to send a message to management than selling a stock, because that'll hit them where it hurts. Holding a stock to shame a company does little good for anybody's bottom line.
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