[Orangedog]

When such investors poll their share holdings, many find they have enough votes to elect one of their own to a board of a company in which they are invested.

Many big corporations eliminated this option from their own employees who participate in their 401K. My employer used to allow contributors to by stock in the company through their 401K and even matched all contributions in company stock. Two years ago they changed the rules and forced everyone who owned the company's stock in the 401K to convert their holdings into a "shares fund" which took away all of their voting rights. They even changed the rules in the self-directed brokerage accounts to prevent them from owning two specific items: gold and silver bullion, and stock in the company.

[Hostage]

Alot of companies switched their 401ks to mutual funds and various index investments. Most of it is driven by 401k management companies such as American General.

I have heard many accounts of employees being threatened if they mention they will pull out of their 401k.

One director of an HMO received quarterly fee compensation from American General for steering the HMO employees to them. When that word got out about it, the director was transferred to an affiliate HMP network and a new director leaked that such compensation was no longer offered, although after some digging, the word leaked through HR that the new director and the executive management were receiving discount pricing on certain mutual funds that they could sell immediately for a profit through their 401 account.

IMO the entire alignment of insurance and benefits through an employer should be questioned. It started in WWII as a result of a freeze on wages. There is no reason for it to continue today except that it provides convenient shopping for insurance and fund management companies. And it gives employers a piece of the action.