Posted on 08/11/2023 5:29:00 AM PDT by MtnClimber
Woke managers are now much more vulnerable to shareholder litigation.
An actuary is a professional with advanced mathematical skills who deals with the measurement and management of risk and uncertainty. Their calculations analyze historical data and gauge the likelihood of future events. Setting accurate insurance prices and avoiding losses depend on their calculations.
SNIP
Another kind of wildfire is active in the country, one that is destroying shareholder value. This conflagration has been triggered by woke management.
For example, an $83 billion a year consumer goods provider allowed its razor subsidiary, with a client base of mostly males, to launch a marketing campaign bemoaning toxic masculinity and experienced an $8 billion write down in share value. A 170-year-old brewery promoted one brand to an emerging transgender market while offending a significant portion of existing clients causing sales to drop 30%, and share valuation to fall more than $15 billion. A major retailer with over 1900 stores introduced controversial clothing targeting the LGBT community, that makes up less than 7% of the population, and lost over $14 billion in share value
When pension funds, endowment trusts, and individual investors buy a company’s stock they expect management to act in the best interest of all shareholders. When shareholders feel otherwise, they have resorted to lawsuits, either as a direct plaintiff or what is called a “derivative” lawsuit on behalf of the corporation itself. A common basis for such litigation is when management fails to act in good faith and with reasonable diligence, such as anticipating the negative impact of their actions on shareholder value. Shareholder litigation in 2022 resulted in payouts by corporations totaling $3.6 billion, a fifteen-year high. Therefore, the price of directors’ and officers’ liability insurance has been rising.
(Excerpt) Read more at americanthinker.com ...
But, will woke management pay attention?
“But, will woke management pay attention?”
You may misunderstand their goal. They don’t give a damn about individual shareholders or their fiduciary duties. They’re not there to make these companies more valuable.
They’re there to destroy them.
L
No and the reason is simple. They get PAID regardless what they do. The only thing they directly impact is their “Bonus.” If they really F-up, they get fired, but their contract close out is worth millions. Again, they don’t lose.
Their bank accounts are fat, they are still woke and there are still dozens and dozens of WOKE companies that will hire them to promote WOKE ideals.
It’s all about the money. They think that when the SHTF they can “buy” their way to safety.
Woke management won’t pay attention until the settlements come directly out of their own pockets and bank accounts, they’re fired from their job, and find that they are unemployable anywhere.
Maybe not even then.
They aren't as smart as a lot of people assume they are.
As long as blackrock, EV, and Nuveen are pushing ESG and other crap, it won’t go away. And the same folks that own the money own the actuaries too. They will keep supporting this crap until they piss off the normals enough to get their heads a meeting with a guillotine. Which might not EVER happen.
The question becomes what management?
I will postulate that the Woke madness takes place at perhaps three or four levels below the top. The top management is unaware of the degree to which te company has become involved in woke process.
The Bud Lite debacle has certainly alerted the top layers to a serious problem they are now looking to uncover in their own companies
The evidence I have seen is that zealous women are the rooot of the woke problem and can and will be contained
“They’re there to destroy them.”
I don’t think they want to actively destroy the the company. They wish to use it to promote their ideology at any cost, stockholders be damned
I knew and worked with actuaries. Interesting characters. Our biggest competition for hiring the best ones was the NSA. I went to a couple of seminars on ‘Game Theory as applied to Risk Management’ when I worked for a big insurance company. Geeks to a person, serious SERIOUS math skills needed for that job.
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