Why do the stockholders put up with this? I'm not being rhetorical, I'd really like to know how this passes as good management.
The stockholders have no idea what is going on. That's the way it is with every corporation in this country. Most shares are owned by big institutions who are too busy playing pump-and-dump to notice, by daytraders who don't own the stock long enough to receive a proxy statement, or by grandma's who through the proxy statement in the trash because they can't read the legalese.