Elon Musk Exposes the "Corporate Terrorists" Controlling Half of Wall Street's Voting Rights
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Episode Description
Full episode: https://youtu.be/j6_VfR-CyuM
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Brief Summary
Corporate governance issues arise from passive funds and advisory firms' influence.
Key points
- Corporate Governance Crisis. A fundamental issue arises with corporate governance in publicly traded companies.
- Influence of Advisory Firms. Advisory firms like Glass Lewis and ISS control significant votes in the stock market.
- Concerns Over Job Security. The speaker worries about being fired for political reasons while developing robots.
Transcript
I do think we've got a fundamental issue with corporate governance in publicly traded companies where you've got about half of the stock market is controlled by passive index funds and most of them outsource their decision to advisory firms particularly Glass Lewis and ISS. I call them corporate ISIS. They're just terrorists. Glass Lewis and ISS controlled the vote of half the stock market. They own no stock in any of these companies. Now, if you're a political activist, you know what a great place would be to go work? ISS and Glass Lewis. And they do. you know where political activists go. They go where the power is. I think that this there's
a fundamental breakdown of producer responsibility here. You know, the Tesla thing is it's called sort of compensation, but really it's not about compensation. I'm going to go out and buy, you know, a yacht with it or something. It's just that if I'm going to build up Optimus and have all these robots out there, I need to make sure we do not have a terminated scenario, then I maximize the safety of the robots. I feel like I I need to have something like a 25% vote, which is enough of a vote to have a strong influence, but not so much of a vote that I can't be fired if I go insane. But my concern would be creating this army of robots and then being fired for political reasons
because of ISS and Glass Lewis fire me effectively even though I've done everything right. If you don't get that vote, if it doesn't go your way, it looks like it's going to. Would you leave? I mean, is that even in the cards? I heard the board was very concerned about that. Let's just say I'm not going to build a robot arm on me if I can be easily kicked out by activist investors.





