Pension funds and sovereign-wealth funds own a large and increasing fraction of the shares in publicly traded companies in the OECD area. These funds typically have a very long time horizon on their investments, as well as highly diversified portfolios. These features imply that the interests of...

More than one third of companies listed in the FTSE EUROFIRST 300 index are governed accordingly to principles differing from the One share – One vote standards. These exceptions could be illustrated by several practices such as Scandinavian multiple voting shares, non voting shares as seen in...

This paper discusses a new system of firm governance. In the system, the responsibility for voting the shares of a firm (“voice”) is given to the people who ultimately provided the money, who, however, have to delegate it to proxy voting institutions. The system helps overcome collective...