Session 3 (Undergraduate): Corporate Governance

In this class, we started to look at the what can wrong with the Utopian world that allows us to focus on stock price maximization. In particular, we examined how the mechanisms that shareholders use to keep managers in line, the annual meeting and the board of directors, are flawed. We closed with the general question of looking at how much power stockholders have to create change in corporations.
Slides: www.stern.nyu.edu/~adamodar/po...
Post class test: www.stern.nyu.edu/~adamodar/pd...
Post class test solution: www.stern.nyu.edu/~adamodar/pd...

[@rishabhsurana332]

Thank you for the upload sir
Best Regards!!!

[@noahleidinger8489]

I didn´t know that golden shares exist thanks for the info!

[@MrVisa79]

Professor, as you are explaining about the power holding in a company rests with Golden share and Common share holder as they have voting rights with no voting rights on Preferred stock holders, isn't it that it is the Preferred stock holders who have a greater claim on the company's assets and earnings? It is the preferred stockholder who are paid first before Common stockholder during dividend distribution (dividends for preferred stock holders is usually consistent and greater than that of common stock holders; Board may even decide not to pay regular dividend to common stock holders) and also during the times of insolvency, the company has an onus to pay off to its debtors and then to preferred stock holders before the common holders. So, in my understanding it is the trade-off between Power and the fixed income security. Kindly clarify. thanks.

[@chuckharrell6409]

What was the name of the disney book he suggested about the horrible board?

[@noahleidinger8489]

i took Under Armour guess who the chairman is.