Chevron Corporation (CVX), Chesapeake Energy Corporation (CHK), Nabors Industries Ltd. (NBR): Three Companies Muffling Shareholders’ Voices

The Foolish takeaway
The conduct of the boards at Chesapeake Energy Corporation (NYSE:CHK) and Nabors inspired shareholders at both companies to vote in favor of the shareholder proposals pushing for greater proxy access. While Nabors Industries Ltd. (NYSE:NBR) has resisted pressure to take further action on the non-binding resolution, Chesapeake is responding to the non-binding proposal by sponsoring its own proposal.

This is a positive step, as it gives shareholders more power to hold the corrupt and inept board members accountable at companies that have proved themselves untrustworthy. It also allows investors to introduce directors who offer different perspectives on what’s best for the company.

But investors should ask themselves: Should it take a headline-grabbing scandal to push for more power over board elections? In an environment where egregious executive pay packages and conflicts of interest have become commonplace, I’d like to see more “disruption” introduced into boards before these scandals arise.

The article 3 Companies Muffling Shareholders’ Voices originally appeared on Fool.com.

Motley Fool contributor M. Joy Hayes, Ph.D., is the Principal at ethics consulting firm Courageous Ethics. She has no position in any stocks mentioned. Follow @JoyofEthics on Twitter. The Motley Fool recommends Chevron and has options on Chesapeake Energy.

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