When the stock price is rising and investors are making money, it seems companies can do little wrong, but when stock prices fall, everyone questions the strategic planning of the company.
In an article by Ross Kerber and Simon Jessop of Reuters, last year climate concerns were the number one issue for institutional shareholders and Big Oil was being challenged at the AGMs. The most telling example was at the AGM of ExxonMobil 3 directors who had a focus on climate change were elected to the Board. This year the world has changed, oil prices are up, oil company shares are up and investors are backing management.
Votes that were receiving greater than 50% of the vote regarding climate change are now receiving less than 50%.
Linking to dividend paying stocks, issues always come up and there will be some validity about them, however if the company can make a profit and pay dividends the majority of shareholders will tend to vote for management. If the stock price declines expect greater dissatisfaction with management.
There are more questions than answers, till the next time – to raising questions.