Activism by Shareholders Picks Up Steam Online

Some campaigns aim to unseat board members. The CtW Investment Group, which is affiliated with a coalition of labor unions, wants board members at six financial firms, including Citigroup and Merrill Lynch, to explain what they did to manage subprime-loan risks. Says CtW’s Mike Garland: “Absent compelling explanations, we’ll recommend that shareholders vote against reelection.”

Department of about damn time. Notice that it is labor unions taking action, NOT institutional investors. Remember who your friends are, it is not the manager of your mutual fund.