Tuesday, September 2, 2014

Blessed Are the Meek Public Pension Funds

At the New York Times Dealbook, Andrew Ross Sorkin notes that public pension funds have been lately silent on the issue of corporate inversions. (See co-blogger Anne Tucker on inversions here and here.) Sorkin writes, "Public pension funds may be so meek on the issue of inversions because they are conflicted."

Maybe I am reading too much into his choice of words, but "meek" implies more to me than "moderate" or "mild" and instead conveys a value judgment that fund managers have an obligation to speak out. I am not pretty sure that's not true.

I definitely don't like companies heading offshore for mild gains, and I don't think I would support such a choice, but as a director, I'd sure analyze the option before deciding. Fund managers, too, have obligations to look out for their stakeholders, and unless I had a clear charge on this front or thought the inverting company was clearly wrong, I'd probably stay quiet, too.

Although the meek may inherit the earth, at least at this point, I might substitute "meek" with "cautious" or even "prudent."  But that's just me.

http://lawprofessors.typepad.com/business_law/2014/09/blessed-are-the-meek-public-pension-funds.html

Business Associations, Corporate Governance, Corporations, Current Affairs, Joshua P. Fershee, Merger & Acquisitions | Permalink

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