Comments on: On mutual fund directors and multitasking… http://www.footnoted.com/buried-treasure/on-mutual-fund-directors-and-multitasking/ Morningstar's guide to what's hiding in SEC filings Tue, 07 Feb 2012 21:51:20 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Steve in Silverton, Oregon http://www.footnoted.com/buried-treasure/on-mutual-fund-directors-and-multitasking/comment-page-1/#comment-8982 Steve in Silverton, Oregon Sun, 19 Jul 2009 16:26:16 +0000 http://www.footnoted.com/?p=4026#comment-8982 I suspect the reason that he is on so many boards is that he is usually going to vote management's way. Not looking out for the investors is the only reason one person could be so popular. I suspect the reason that he is on so many boards is that he is usually going to vote management’s way. Not looking out for the investors is the only reason one person could be so popular.

]]> By: Walt French http://www.footnoted.com/buried-treasure/on-mutual-fund-directors-and-multitasking/comment-page-1/#comment-8965 Walt French Wed, 15 Jul 2009 14:15:19 +0000 http://www.footnoted.com/?p=4026#comment-8965 There is the teensy possibility that the multi-taskers are more expert than anybody else in the world about issues to come before funds' boards, so that even minutes of their asking, "what about X?" is of tremendous value. After all, the whole idea of a Board is to bring in a well-reasoned range of viewpoints on what protects investors' interests. Nothing wrong with a little cross-pollination, as long as no specifics cross company lines, and investors' interests could be inferred to be VERY generic. There is the teensy possibility that the multi-taskers are more expert than anybody else in the world about issues to come before funds’ boards, so that even minutes of their asking, “what about X?” is of tremendous value.

After all, the whole idea of a Board is to bring in a well-reasoned range of viewpoints on what protects investors’ interests. Nothing wrong with a little cross-pollination, as long as no specifics cross company lines, and investors’ interests could be inferred to be VERY generic.

]]> By: Michelle Leder http://www.footnoted.com/buried-treasure/on-mutual-fund-directors-and-multitasking/comment-page-1/#comment-8959 Michelle Leder Tue, 14 Jul 2009 22:48:00 +0000 http://www.footnoted.com/?p=4026#comment-8959 @DCiFlCare: Just to be clear, Michelle Obama no longer sits on any of these boards. She gave them up awhile ago. Was just trying to prove a point that you can pick any mildly well-known name -- this was long before she was First Lady -- and it wouldn't be too hard to have them turn up as a so-called independent director on a mutual fund. And while I tried to make a clear difference between public company boards and mutual fund boards, since the former clearly involves a lot more work, it still calls into question how any one individual can sit on so many boards and provide anything approaching independence. @DCiFlCare: Just to be clear, Michelle Obama no longer sits on any of these boards. She gave them up awhile ago. Was just trying to prove a point that you can pick any mildly well-known name — this was long before she was First Lady — and it wouldn’t be too hard to have them turn up as a so-called independent director on a mutual fund. And while I tried to make a clear difference between public company boards and mutual fund boards, since the former clearly involves a lot more work, it still calls into question how any one individual can sit on so many boards and provide anything approaching independence.

]]> By: Vintage Filings http://www.footnoted.com/buried-treasure/on-mutual-fund-directors-and-multitasking/comment-page-1/#comment-8957 Vintage Filings Tue, 14 Jul 2009 20:22:06 +0000 http://www.footnoted.com/?p=4026#comment-8957 Well its comforting to know the conurbation of financial fat cats are all twiddling thumbs making 'decisions' together. [sarcasm] Well its comforting to know the conurbation of financial fat cats are all twiddling thumbs making ‘decisions’ together. [sarcasm]

]]> By: DCifICare http://www.footnoted.com/buried-treasure/on-mutual-fund-directors-and-multitasking/comment-page-1/#comment-8955 DCifICare Tue, 14 Jul 2009 16:00:57 +0000 http://www.footnoted.com/?p=4026#comment-8955 The average number of board corporate meetings is something like 8-10/year. If you attend only 75%, that's maybe 6/yr/board. (not including committee meetings) Some years back, when I was paying more attention, Vernon Jordan sat on 12 boards. With a 75% attendance rate, he had 6 meetings a month to attend - all over the US. He didnt come close to that 75% mark, but you could argue he was worth his seat if he picked up the phone once or twice a year on behalf of those companies... Oversight aside, maybe another valid measure of board member worth is is how much juice you have. Michelle Obama can sit on the board of any company I own stock in. The average number of board corporate meetings is something like 8-10/year. If you attend only 75%, that’s maybe 6/yr/board. (not including committee meetings)
Some years back, when I was paying more attention, Vernon Jordan sat on 12 boards. With a 75% attendance rate, he had 6 meetings a month to attend – all over the US. He didnt come close to that 75% mark, but you could argue he was worth his seat if he picked up the phone once or twice a year on behalf of those companies…
Oversight aside, maybe another valid measure of board member worth is is how much juice you have. Michelle Obama can sit on the board of any company I own stock in.

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