Lesson for big business: Ignore investors at your peril
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Re: “Governance issue may affect CP All’s sale of Makro shares”, Business, February 8.
The situation in which a giant retail company is facing the ire of its investors for allowing its top executives to stay despite being punished for insider trading seems to be getting out of control.
If these big-time institutional investors, both private and public, vote with their feet in this way, it will likely be the beginning of the end for the firm.
It is a pity that such a big and powerful company should be facing this dilemma. In the past two years alone the corporation has acquired a slew of big businesses both here and abroad.
But then, as the owner of another giant conglomerate used to warn us, “An object that goes up higher than others will hit the ground harder when it comes down.”
Vint Chavala
