1) Re-defining the original meaning of the share of stock. Current paper that is stripped of voting rights, various classes and super-classes of stock based on who happens to be the shareholder just seem keenly intent on making the corporate governance process more opaque. If you want the exec to have 100x votes over anyone else, print 100x as many shares.
2) Double taxation of dividends. Distributions by REIT, MLP or a pass-through LLC/LLP don't get taxed at a corporate level. Convert that entity to a corporation and keep the same process, and what you used to call "distributions" is now called "dividends" and gets taxed twice.
3) Slow dilution of existing stock pool via new options and companies printing new shares of stock. If they want to award some shares to their execs, they should go out and buy them in the open market. If they want to raise cash for acquisitions, the debt markets are eager to accommodate. Dilution is the ultimate "trickle up" benefitting current management at the expense of the small shareholders.
1) Re-defining the original meaning of the share of stock. Current paper that is stripped of voting rights, various classes and super-classes of stock based on who happens to be the shareholder just seem keenly intent on making the corporate governance process more opaque. If you want the exec to have 100x votes over anyone else, print 100x as many shares.
2) Double taxation of dividends. Distributions by REIT, MLP or a pass-through LLC/LLP don't get taxed at a corporate level. Convert that entity to a corporation and keep the same process, and what you used to call "distributions" is now called "dividends" and gets taxed twice.
3) Slow dilution of existing stock pool via new options and companies printing new shares of stock. If they want to award some shares to their execs, they should go out and buy them in the open market. If they want to raise cash for acquisitions, the debt markets are eager to accommodate. Dilution is the ultimate "trickle up" benefitting current management at the expense of the small shareholders.