Some of these letters got it exactly right:
Sen. Warren’s claim that shareholder rights became dominant in the early 1980s, to the detriment of employees and other constituents, is wrong and ignores decades of history. Beginning in 1933, professional shareholders, led by John and Lewis Gilbert, campaigned successfully to get corporate America to put shareholders first. As early as 1947, these “gadflies” won an important milestone, when federal judge John Biggs Jr. famously wrote in SEC v. Transamerica: “A corporation is run for the benefit of its stockholders and not for that of its managers.”
It wasn’t until the late 1960s that social activists began copying the methods of the gadflies for other ends, like asserting employee rights. The first example was in 1967, when Saul Alinsky successfully challenged Eastman Kodak’s minority hiring practices.
Prof. Lawrence A. Cunningham
Sen. Warren says corporations shouldn’t be accountable only to shareholders. They aren’t. Corporations already answer to various arms of the federal, state and local governments. In fact, before shareholders get any part of a company’s earnings the various levels of government get their cut. Those who supply goods or services to the company get paid. Employees get paid. The banks who lend money to the company get paid. All of these get their due with a high level of certainty. Shareholders get paid last.
Michael J. Clowes
Who wins under this bill? The federal government gets even more power, plaintiff attorneys get more business and progressive politicians don’t need to worry as much about conservative causes getting corporate money. Of course, labor unions and others will continue to pour money into progressive coffers.
One thing we learned from the Obama years is that you cannot beat up American business without harming economic growth. Regulation, litigation and Washington, D.C., power over corporations are far more likely to stifle growth than to benefit workers.
Dana R. Hermanson
And the one that gets my vote for the best of the lot (sorry Larry):
Ms. Warren explains that “75% of directors and shareholders would need to approve before a corporation could make any political expenditures.” Since I pay school taxes, is there a proposal in the pipeline that the teachers unions must gain 75% of the taxpayers’ vote before making political contributions?
Sean Philips
