I'm no fan of shareholder activism, especially the brand practiced by state pension funds. A Wall Street Journal editorial today offers a succinct explanation of why we should have doubts about such activism:
It used to be that the job of treasurer was a modest sinecure for someone who wanted to protect the state fisc. But as state pension-fund assets have soared, these former nobodies are now trying to leverage their dollars for their own political profit. Most notably, California Treasurer Phil Angelides has been helping to steer Calpers to promote union causes in the expectation that the unions will return the favor when he runs for governor against Arnold Schwarzenegger. As if this country didn't have enough politicians bent on redistributing wealth rather than creating it.
