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Shira Ovide

Netflix Ignores Shareholder Democracy

There's pretending to care about what shareholders think and then there's outright rejection.

Shareholder democracy at public companies is mostly democracy in name only. Stockholders vote for directors, but in nearly all cases they have just one candidate to choose from. It's not unusual for directors to skip the one time a year they're supposed to show their faces to the shareholders who own the company. Few stockholders even show up to these annual meetings, and they're often drawn there less by democratic urges than by the sausage buffets.

We like democracy in America even if it never measures up to the ideal. Netflix, on the other hand, is among the companies that don't even bother to pay it lip service.